Comments
Aluminium futures on the Multi Commodity Exchange (MCX) closed at ₹203.05 last Friday, declining for the second week in a row.
The contract has a support band in the ₹200-202 range. It will restrict the contract from experiencing further fall from the current levels.
Going ahead, there is a good chance that the bulls will gain traction and push the prices up. While ₹206 can be a hurdle, aluminium futures could surpass this level and reach ₹215 in the coming weeks.
However, a breach of the support at ₹200 can result in a sharp fall. Notable support below ₹200 can be spotted at ₹195 and ₹192. The charts indicate that prices of aluminium futures will rise.
Trade strategy
Last week, we recommended initiating long positions at ₹206 and we advised to place stop-loss at ₹202.
Traders can retain the longs but widen the stop-loss to ₹200 to accommodate for the recent price action. When the contract rallies to ₹212, tighten the stop-loss to ₹208. Book profits at ₹215.
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.