Comments
Aluminium futures (November series) on the Multi Commodity Exchange (MCX) marked a high of ₹209.85 last Monday. But the rally could not lift the contract beyond that, and the price fell. On Tuesday, it closed at ₹205.1.
The contract is trading just above the 200-day moving average (based on the closing price of the continuous contract), which is currently at ₹204.50. As long as aluminium futures stay above this level, the bias will be bullish.
If there is a recovery, aluminium futures could touch ₹212. In our analysis last week, we had mentioned that the contract has the chance to rise to ₹215. But there is a loss of momentum, and the rally is likely to be limited to ₹212.
On the other hand, if aluminium futures slip below ₹204, it will most likely retest ₹200.
Trade strategy
We had suggested long positions at ₹206. The revised stop-loss for this is at ₹204. Since the contract fell after marking a high of ₹209.85, it did not hit our target of ₹215.
Hold this trade but revise the target as there is a loss of traction with the bulls. Bring the exit point down from ₹215 to ₹212. Retain the stop-loss at ₹204.
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.