Copper futures, which was largely held in a horizontal trend last week, saw a breakout early this week. This has opened the door for further appreciation.

The December contract broke out of the hurdle at ₹826 on Monday. There is a resistance ahead at ₹835. But we expect the copper futures to see not more than a minor corrective decline, possibly to ₹830,  because of the barrier at ₹835. Eventually, it can top ₹835.

If the contract breaks out of ₹835, it can see a swift rally to ₹852, a potential resistance. Above this, the nearest resistance can be spotted at ₹865.

So, broadly, the expected price trajectory for copper futures from the current level of ₹833 is a fall to ₹830 followed by a potential rally which can take the contract to ₹852.

Trade strategy

Buy copper futures when the price slips to ₹830. Keep initial stop-loss at ₹822. When the contract rallies past ₹835, revise the stop-loss to ₹830. Tighten the stop-loss to ₹840 when the price hits ₹845. Book profits at ₹852.

In case the contract breaks out of ₹835 without seeing a decline to ₹830, you can still go long. Target and stop-loss can be ₹852 and ₹830 respectively. Follow the stop-loss revisions as mentioned above.