Comments
The continuous contract of aluminium on the Multi Commodity Exchange (MCX) has been on an uptrend since May 2020. While there was a period of consolidation in July and August this year, when the price was held within the range of ₹200-210, the futures were able to break out of this range towards the end of August and went on to make a fresh high of ₹235.3 a week ago.
Although it has retreated from the highs to the current level of about ₹226, the trend has not turned bearish. The short-term trend will be bullish until the price stays above the support band of ₹223-225 and the medium-term trend can upward inclined so long as the futures is above ₹200. Also, indicators like the relative strength index (RSI) and the moving average convergence divergence (MACD) on the daily chart lies in the bullish zone.
However, RSI is hovering near the over-bought territory and the MACD is showing slight weakness. Hence, a minor correction cannot be ruled out.
Traders can go long at around ₹224 and when the price touches 21-day moving average (which is currently at ₹218); stop-loss can be at ₹210. On the upside, the contract is likely to retest ₹235 and can even rise to ₹245.
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.