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After a fall in prices, Aluminium futures (continuous contract) has become range-bound.
The contract on MCX has largely been oscillating between ₹202 and ₹205 for the last couple of weeks.
However, the contract has seen a bounce-off around the ₹200-202 support levels and is currently trading at around ₹207. The price is now above the 20-day moving average, giving it a bullish bias.
Against this backdrop, we expect the contract to see an up move from the current levels. Although the contract might face a minor resistance at ₹215, it is likely to go up towards ₹225-230.
Also read: Nifty Prediction – March 29, 2023: High risk appetite traders can go long
On the other hand, if the contract declines from the current levels and slips below the support at ₹200, the chances are high for aluminium futures to see another leg of a decline. Support below ₹200 are at ₹192 and ₹186.
Trade strategy
A couple of weeks back, we suggested going long at ₹206 with stop-loss at ₹200. Hold this trade. You can buy now with the same stop-loss if you have not initiated earlier.
When the contract touches ₹215, modify the stop-loss to ₹210. Book profits at ₹228.
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