Comments
Aluminium prices appear likely to bounce back this week. The aluminium futures contract traded on Multi Commodity Exchange (MCX) made a low of ₹203.50 per kg last week. It then managed to rise back and currently trades at ₹205 per kg.
Outlook
The rise above ₹204 is a positive sign. The region between ₹204.20 and ₹204 will now be a good support. Immediate resistance is at ₹206.50. But as long as the contract trades above ₹204 the outlook will be bullish. So, the aluminium futures contract is highly likely to breach ₹206.50 in the coming days. Such a break can take the contract up to ₹209-210 this week.
Support below ₹204 is at ₹203. The contract will come under pressure only if it declines below ₹203. In that case, there may be a fall to ₹202 and ₹201 in the short term, but that looks less likely.
The price action on the daily chart indicates that the MCX aluminium contract can sustain well above ₹204 and rise past ₹206.50 in the coming days.
Trade strategy
Traders can go long now. Accumulate on dips at ₹204.50. Keep the stop-loss at ₹202.50. Trail the stop-loss up to ₹206.20 as soon as the contact moves up to ₹207. Move the stop-loss further up to ₹207.30 when the price touches ₹208.10. Exit the long positions at ₹208.50.
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.