Agri Business

MCX Aluminium stuck in a broad sideways range

Gurumurthy BL Research Bureau | Updated on March 05, 2018

The aluminium futures contract on the Multi Commodity Exchange (MCX) fell initially in the past week from ₹142 per kg to make a low of ₹138.4 on Thursday last week.

The contract has been broadly range-bound between ₹136 and ₹144 for more than two months. Within this range, it is currently poised around the mid-point of this range at ₹140 per kg. The contract has been oscillating around ₹140 over the last few days.

Immediate support is at ₹138 – the 100-day moving average. If the contract sustains above this support and manages to breach ₹141, a rise to ₹143 or ₹144 is possible in the coming days. A strong break and a decisive close above ₹144 will mark the end of the prolonged sideways consolidation. Such a break will boost the bullish momentum and will trigger an up move targeting ₹150 in the coming weeks.

On the other hand, if the contract breaks below the immediate support at ₹138, it can fall to ₹136 – the lower end of the range. A bounce from ₹136 will keep the sideways range intact and take the contract higher to ₹140 or even higher levels thereafter. But if the contract breaks below ₹136 decisively, it can come under fresh pressure. Such a break will drag the contract lower to ₹132 on the back of profit booking. This down move could be swift as the contract has been stuck in a broad sideways range for a prolonged period of time.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

Published on March 05, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like