MCX Aluminium breaches key hurdle, turns bullish

Gurumurthy K | Updated on January 15, 2018 Published on November 14, 2016


The aluminium futures contract on the Multi Commodity Exchange (MCX) surged, breaking above a key resistance at ₹116 per kg in the past week. The contract sky-rocketed over 6 per cent to record an intra-week high of ₹120.7, but gave back some of its gains and closed the week at ₹117.4.

However, the contract has opened the week on a positive note and is trading around ₹118. The level of ₹116 which is the 61.8 per cent Fibonacci retracement level may now provide support for the contract and limit the downside in the near-term. A revisit of ₹120 and ₹121 looks likely this week. A strong break above ₹121 can take the contract higher to ₹123 or ₹125 there after.

Short-term traders with high risk appetite can go long on dips near ₹117. Stop-loss can be placed at ₹115 for the target of ₹121. Revise the stop-loss higher to ₹118 as soon as the contract moves up to ₹120.

On the global front, spot aluminium prices on the London Metal Exchange (LME) surged to an intra-week high of $1,778 per tonne before closing at $1,744.5. Key support is at $1,700 and the outlook will remain bullish as long as the metal trades above this level. A rise to $1,800 is possible in the coming week. The view will turn negative only if the prices decline below $1,600. The next targets will be $1,650 and $1,635.

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

Published on November 14, 2016

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.