The resistance in the ₹145-₹147 per kg region for the Aluminium futures contract on the Multi Commodity Exchange (MCX) has held well. The MCX-Aluminium futures contract witnessed a sharp fall last week. The contract made a high of ₹145.45 per kg last Tuesday and tumbled over 4 per cent to make a low of ₹138.45 on Monday.

It has slightly bounced higher from this low and is currently trading at ₹139.15 per kg.

Immediate outlook is negative. Key resistances are at ₹141 and ₹143, which can cap the upside in the coming days. Rallies to these levels can find fresh sellers coming into the market. A fall to ₹137 or even ₹135 is likely in the coming days.

Short-term traders can make use of rallies to go short at ₹141. Stop-loss can be placed at ₹144 for the target of ₹135. Revise the stop-loss lower to ₹139 as soon as the contract moves down to ₹137.5.

Whether the contract manages to reverse higher from the ₹137-₹135 support zone or not will be key in determining the next trend.

An upward reversal will ease the pressure and trigger a relief rally to ₹140 and ₹141 levels again.

But if the MCX-Aluminium contract breaks decisively below ₹135, it can come under more selling pressure. In such a scenario, the possibility of the contract falling to ₹131 or ₹130 will increase.

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

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