Comments
The Aluminium futures contract on the Multi Commodity Exchange fell about 2 per cent in the past week. The contract is currently trading at ₹123.45 a kg, just above a key support level of ₹123. The contract will come under more pressure if it declines below ₹123. Such a break can take the contract lower to ₹122 or ₹121.5 initially. Key trendline supports are poised at ₹122 and ₹121.5. An upward reversal from either ₹122 or ₹121.5 can take the contract higher to ₹125 or even ₹127 once again. In such a scenario, the contract may remain range bound between ₹121.5 and ₹127 for some time. A breakout on either side of this range will then decide the next trend.
On the other hand, the downside pressure may increase if the MCX-Aluminium futures contract breaks below ₹121.5 decisively. Such a break will increase the likelihood of the contract extending its fall to ₹120 and ₹119 thereafter.
The contract will need a strong break and a decisive close above ₹127 for the downside pressure to ease. Such a break can boost the momentum and take the contract higher to ₹130 thereafter. But such a rally looks less probable at the moment. The contract may consolidate between ₹121 and ₹127 for some time before it makes a swift move on either side.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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.