- Tight supply supports a record copper rally despite weak Chinese demand, with prices testing record resistance near $6.70.
- Copper prices have gained significantly in July, with a potential breakout above $6.70 likely to lead to higher prices.
- The August futures have surpassed the resistance at ₹1,360, indicating a continued rally, with expectations to reach ₹1,400 soon.
- If copper futures decline and breach the support at ₹1,325, it could lead to a deeper decline, possibly to ₹1,300.
Copper prices have surged significantly, testing record resistance levels near $6.70 despite a slowdown in China's economy. Analysts predict that a breakout above this threshold could propel prices towards $8 as tight supply and low inventories continue to support the market.12
The August futures have shown resilience, bouncing off the 21-day moving average at ₹1,325 last week and surpassing resistance at ₹1,360. This momentum suggests a potential rally towards ₹1,400, with further gains possible if the market maintains its upward trajectory.34
However, analysts caution that a decline below ₹1,325 could signal a bearish trend, with support levels at ₹1,300 and ₹1,275. The current market dynamics reflect a complex interplay of factors, including strong export demand and low inventories, which are keeping the short-term outlook bullish despite the challenges posed by weak property and factory data from China.
Last week, traders were advised to buy copper futures at ₹1,322, with a recommendation to adjust stop-loss levels to ₹1,345 and to book profits at ₹1,395, indicating a strategic approach to navigating the volatile market conditions.
“Copper is testing record resistance near $6.70, and a break above that level could open the way toward $8. August copper futures have cleared ₹1,360 and are targeting ₹1,400–₹1,430, with the suggested trade's stop-loss raised to ₹1,345.”
