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The Aluminium futures contract on the Multi Commodity Exchange of India (MCX) has been stuck in a narrow range between ₹145 and ₹152 per kg over the last few weeks. Within this range, it is currently trading at ₹147 per kg. A breakout on either side of ₹145 or ₹152 will decide the direction of the next move.
A break above ₹152 will boost the bullish momentum. It will then take the contract higher to ₹158 and ₹160. A further break above ₹160 will increase the likelihood of the contract targeting ₹168 and ₹170 over the medium term.
On the other hand, if the MCX-Aluminium futures contract breaks below ₹145, it can fall initially to ₹142. A break below ₹142 will then increase the possibility of the downward move extending further towards ₹138.
Global trend
The Aluminium (3-month forward) contract on the London Metal Exchange (LME) has been stuck in a narrow range between $1,890 and $1,930 per tonne in the past week. It is currently trading at $1,918 per tonne. The near-term outlook is unclear. A breakout on either side of $1,890 or $1,930 will decide the next move. A break below $1,890 can take it to $1,870. A further break below $1,870 can then test $1,860 and $1,845.
On the other hand, if the LME-Aluminium contract breaks above $1,930, it can target $1,985 and $2,000.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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