Aluminium futures contract on the Multi Commodity Exchange (MCX) retained its ₹136-141 a kg sideways range. The contract has been stuck in this range for four weeks.

Though stuck in this range, the contract was volatile in the past week. It hit a low of ₹136.35 on Wednesday and reversed sharply higher to reach ₹140.6 on Friday. The contract has come-off this high and is currently trading at ₹138.5. The contract may remain in the sideways range for some more time. A strong breakout on either side of ₹136 or ₹141 will determine the next trend for the contract.

Traders can continue to avoid trading this contract until a range breakout gives a clear cue on the next trend as well a confirmed trade signal.

If the contract manages to surpass the hurdle at ₹141 decisively, it can target the next key resistance level of ₹143. As has been reiterated the last few weeks, ₹143 is a key long-term resistance level.

Inability to break above ₹143 may trigger a pull-back to ₹141 and ₹140 initially. Further break below will see the corrective fall extending to ₹139 and ₹137.

On the other hand, if the contract breaks the current range below ₹137, it can come under renewed pressure and fall to ₹135 or even ₹132.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

Related Topics
comment COMMENT NOW