Comments
For the last one month, aluminium prices have moved horizontally. The continuous contract of the metal on the Multi Commodity Exchange (MCX) has been stuck in the range of ₹195-212. In the last couple of weeks, it has oscillated in the narrow range of ₹195-205. Thus, it is not ideal to take positional trades at this juncture. One can possibly consider short-term trades.
From the current level of ₹200, we expect the contract to decline to ₹195 at first, and then it could possibly drop to ₹188. The 20- and 50-day moving average, both at ₹200, could offer resistance to the bulls in taking the contract upwards. Even if this level is invalidated, there are strong barriers at ₹205 and ₹212.
Considering the above factors, our trade recommendation:
Trade strategy
Stay on the fence for now and initiate fresh short positions if the MCX aluminium futures rallies to ₹205. Place stop-loss at ₹214 at first and then revise it down to ₹205 when the price slips below ₹195. Exit the shorts at ₹188. The price band of ₹186-188 is a good support against which the contract can witness a bounce.
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.