Comments
The November futures contract of Aluminium on Multi Commodity Exchange (MCX) witnessed a fresh breakout last Friday, opening the door for more appreciation in price.
The contract, which has been rallying for over a month, entered a sluggish phase in mid-October where the price was hovering around ₹150. But the fresh breakout has turned the outlook positive and the contract is likely to advance to ₹155. Beyond that level, it can possibly rise to ₹160. However, if the trend turns downward, ₹150 can be a considerable support. A breach of this level can drag the contract to ₹147.
The moving average convergence divergence indicator in the daily chart indicates good upside momentum as it continues to move northwards. The daily relative strength index too remains in the positive territory. Moreover, the global price movement supports the bullish view i.e. the three-month rolling forward contract of the metal on London Metal Exchange has bounced off the support of $1,800 last week.
Thus, the outlook is bullish and so traders can buy MCX-Aluminium with stop-loss at ₹147.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.