Copper, Crude Oil: Check key trading strategy, target price and more

Copper Outlook

Trafigura Group, a leading copper trader, stated that copper’s recent surge to a record high wasn't supported by real-world supply and demand. Copper prices reached an all-time high of $11,104.50 per ton last month but have since dropped to $10,025. 

Trafigura attributed the rally to investment flows rather than market fundamentals. Despite current weaknesses, they expect the market to tighten due to supply constraints and mine closures.

Technically

On the daily chart, MCX Copper has been unable to sustain the breakout of its rising channel pattern and has moved down, forming a lower high, lower low pattern, indicating bearish sentiment. The inability to break above its 21 EMA indicates weakness, and the RSI showing negative divergence further confirms this weakness.

Resistance is around Rs 885 and Rs 905, while support is around Rs 857 and Rs 842.

Intraday Trading Strategy  

– Sell MCX June Copper futures at Rs 875 with a stop loss of Rs 885 and a price target of Rs 857.

Crude Oil Outlook
 

OPEC+ ministers defended their decision to gradually increase crude production from October, predicting the market will recognise the policy's correctness. They emphasised their commitment to market stability and readiness to adjust production if needed. Despite a recent dip in crude prices, they asserted that oil demand remains strong and resilient.

Technically
 

On the daily timeframe, MCX Crude Oil (June) has formed a hammer candlestick pattern, indicating bullish sentiment. A breakout above 6,280 would confirm further upward movement. 

The RSI is in the oversold zone, suggesting a potential price rebound. Resistance levels are identified at Rs 6,280 and Rs 6,440, while support levels are around Rs 6,070 and Rs 5,950.

Intraday Trading Strategy  
 

– Buy MCX June Crude Oil futures at Rs 6,230 with a stop loss of Rs 6,190 and a price target of Rs 6,350

(Neha Qureshi is a senior manager, technical research analyst of commodities & currency. Views expressed are her own.)