MCX-Aluminium moves above key hurdle

The MCX-Aluminium futures contract on the Multi Commodity Exchange (MCX) is getting a breather. The contract seems to have formed a good base above ₹120 a kg in the past week. Subsequently, the contract surged on Monday, breaking above the key ₹121.5-₹122 resistance band. It is currently trading at ₹122.15 . The downside pressure will ease if the contract manages to sustain above ₹122. In such a scenario, a rise to ₹125 is possible in the coming days. Whether the contract breaks above ₹125 or not will decide the next movement. A strong break and a decisive close above ₹125 can boost momentum. Such a break will increase the possibility of the contract rallying to ₹130 again in the coming weeks. But a reversal from ₹125 may drag it lower to ₹122 or ₹120 once again.

On the other hand, if the contract fails to sustain above ₹122 and falls below this level once again, the contract may come under renewed pressure.

Such a pull-back will keep chances of the contract falling to ₹119 and ₹118.7 levels in the coming days alive.

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