Copper futures declined in November and December. Since the calendar turned to 2025, the price has been moving up.

The January futures found support ₹800 and rebounded. The price band of ₹790-800 has been a good demand zone since October last year.

Since the contract has rebounded from a strong support, there is a good chance for it to move up further from the current level. We expect it to touch the nearest resistance at ₹836. A breakout of ₹836 can fuel a rally to ₹860.

But in case copper futures decline from the current level and breach the support at ₹790, it can establish a fresh leg of downtrend, which can drag the price to the ₹765-770 price band.

That said, the bias is clearly bullish now and the recent rebound in price has increased the probability of further rally from here.

Trade strategy

Last week, we suggested buying copper futures at ₹810 and ₹800 with an initial stop-loss at ₹785. So, traders who have initiated this trade will be holding longs with an average purchase price of ₹805.

Hold on to the above trade but revise the stop-loss higher from ₹785 to ₹800. Tighten the stop-loss further to ₹820 when the contract hits ₹830. Exit at ₹836.