The price of aluminium futures have largely held within the range of ₹203-210 since early March. This follows a considerable fall in the preceding month. Thus, the selling momentum has clearly faded and the contract is now attempting to establish an uptrend.
Substantiating the bulls, the support at ₹200 holds true. We expect aluminium futures to gradually pick up momentum and move upwards. Currently trading at ₹208, we might see a breach of the upper end of the range at ₹210. Once this hurdle is taken out, we might see a quick rally towards the price band of ₹225-230.
On the other hand, if the contract declines from the current level and slips below support at ₹200, the chances foranother leg of decline is high. Support below ₹200 is at ₹192 and ₹186.
We suggested going long at ₹206 with stop-loss at ₹200 three weeks back. Hold this trade as the support while ₹200 stays true. When the contract rallies above ₹215, modify the stop-loss to ₹210. Book profits at ₹228.