Though during last two weeks, around 50 per cent of gain has been eroded on account of profit-taking, the current technical position of charts suggest that the metal is all set to record a rally of around $150-200 per tonne in the coming weeks.

The first indication of a rally came from the fact that the metal has formed a higher bottom. The latest bottom of $1691 should be considered as higher bottom, which is a bullish signal. Besides, in its March's rally, the copper price surpassed the $1751 levels formed in the January end.

This further supported by positive Relative Strength Index (RSI). When the rally tookplace in March, the 21-day RSI had formed a higher bottom. It was a clear positive divergence as bottom formed by prices was lower at $1596.

It increases the changes RSI forming a negative divergence. As such, if the RSI forms a negative divergence, copper price needs to cross its immediate top of $1793.

Another oscillator, moving average convergence divergence (MACD) is also hinting at a rally. The medium term MACD has been forming successive higher bottoms. This in the process, has given positive divergences. This becomes very bullish if one were to consider the position of moving averages. The 12-day moving averages has moved above the 48-day moving average.

In other words, the averages have entered into a positive phase which is again a bullish signal. Overall, the technical position of oscillators and copper price strongly hints at a rally. If the rally occurs in the international markets, coupled with a likely increase in import duties, the domestic prices of copper will also firm up in thecoming weeks.