Commodity Calls

MCX-Aluminium is stuck in a narrow range

Gurumurthy K BL Research Bureau | Updated on March 04, 2019 Published on March 04, 2019

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.

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





This article is closed for comments.
Please Email the Editor