Comments
Aluminium futures (October) on the Multi Commodity Exchange (MCX) has been on a rally over the past three months. It bounced off the support at ₹218.
The contract rose above both 20- and 50-day moving averages by mid-September, a positive indication.
However, the aluminium futures faced a barrier at ₹235. While it did not see a bearish reversal, the contract was oscillating within ₹230 and ₹235.
Last week, it broke out ₹235, hinting that the bulls have regained traction. From the current level, aluminium futures is likely to scale further heights.
The nearest barrier from the current level is at ₹250. Subsequent barrier is at ₹255.
In case the contract declines from the current level, it can find support between ₹230 and ₹235. Nearest support below ₹230 is at ₹225, its 50-day moving average.
Trade strategy
Buy aluminium October futures now at ₹238 and accumulate if the price dips to ₹233. Place initial stop-loss at ₹228 at first.
When the contract touches ₹245, trail the stop-loss to ₹238. Tighten the stop-loss further to ₹245 when the price touches ₹250. Book profits at ₹255.
Comments
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.