The Aluminium Futures contract (₹238.15 per kg) traded on the Multi Commodity Exchange (MCX) has come-off sharply from last week’s high. The contract made a high of ₹246 per kg on Thursday last week and has declined over 3 per cent from there. It is currently trading near ₹238. There is room to see further fall from here towards ₹233 in the near-term. The level of ₹233 is a strong trendline support which can halt the current pull-back move. A fresh and strong bounce from this support can take the contract up to ₹246-₹248 in the coming week. Traders with a short-term perspective can wait for dips and go long at ₹233.5. Stop-loss can be placed at ₹229. Trail the stop-loss up to ₹235 as soon as the contract moves up to ₹239. Move the stop-loss further up to ₹238 as soon the contract rises to ₹241. Book profits at ₹243. The uptrend will come under threat if the MCX Aluminium futures contract breaks below ₹233 decisively. Such a break can take the contract down to ₹230 initially. A further break below ₹230 will increase the downside pressure and drag the contract further fall to ₹220. As such the price action around ₹233 will need a close watch in the coming days. For now, we expect the contract to sustain above ₹233 and see a reversal to keep the uptrend intact.

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