Comments
Aluminium futures on the Multi Commodity Exchange (MCX) has been on the rise since the final week of February. Back then, it bounced off the support at ₹198.
For the past few sessions, the contract has been moving around ₹203; it closed at ₹203.2 on Monday. The 50-day moving average now lies at around ₹204, which is resisting the bulls.
In case aluminium futures take a U-turn, it can fall back to the support at ₹198. If this level is breached, the contract can establish another leg of downtrend, where the price could decline to ₹192, a good base.
On the other hand, if aluminium futures cross over the ₹204-205 barrier, it can see a quick rally to ₹212. A breakout of ₹212 can turn the medium-trend bullish. As it stands, from the current level of ₹203, the probability of a rally and a fall are similar.
Trade strategy
A couple of weeks back, we recommended going long on aluminium March futures at ₹198. Liquidate this position at the current level.
Consider fresh longs again if the contract breaches ₹205. Target and stop-loss can be at ₹212 and ₹202.
Comments
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.