Aluminium futures (September series) on the Multi Commodity Exchange (MCX) has been charting a sideways trend over the past few sessions.
The chart shows that the contract is facing a stiff resistance at ₹234. This is the barrier which capped the rally that began at ₹218 two weeks ago.
In order to establish another leg of rally, aluminium futures ought to break out of ₹234. If such a move occurs, the contract can rise to ₹242. Resistance above ₹242 is at ₹250.
On the other hand, if aluminium futures decline from the current level of ₹229, it can retest the support at ₹217. A breach of this can lead to the downswing extending to ₹210.
Trading strategy
Last week, we suggested initiating short on aluminium futures at ₹232 with a stop-loss at ₹238. Retain this position. Going ahead, when the contract drops to ₹225, revise the stop-loss to ₹230. Exit at ₹220.
If neither target nor stop-loss mentioned above is triggered before the expiry i.e., September 30, exit the position on the expiry day.
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.