Comments
Aluminium futures (November series) on the Multi Commodity Exchange (MCX) decisively closed above ₹205 on Monday, giving it a positive impetus.
The continuous aluminium futures has formed a higher low with a bounce off the support at ₹202 last week. Since July, the contract has been forming higher highs and higher lows, indicating a positive undercurrent.
Hence, the breakout of the resistance at ₹205 on Monday is likely to boost the bulls further. Although ₹212 is a hurdle, we expect aluminium futures to surpass this level and touch ₹215 in the near-term.
If there is a decline from here, the resistance-turned-support of ₹205 can arrest the decline. Below this is the key support band of ₹200-202. In the event of the support at ₹200 being breached, the outlook will turn bearish.
Trade strategy
We suggested going long on aluminium futures a couple of weeks back – buy with a stop-loss at ₹200. Retain this trade.
Going ahead, when the contract rallies to ₹212, tighten the stop-loss to ₹208. Book profits at ₹215.
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.