Comments
Aluminium futures on the Multi Commodity Exchange (MCX) has been on a downtrend since the final week of May, after facing a resistance at ₹250.
The June contract slipped below the support at ₹232 and the price action hints at a further decline. But since this contract is nearing expiry, traders can consider the July series for analysis and trading.
The July contract, too, has dropped below a support at ₹235. Moreover, the price is below the 20- and 50-day moving averages, which are showing a bearish crossover.
Therefore, we expect the July aluminium futures to decline in the forthcoming sessions to ₹210. The trend will turn bullish if the contract surpasses the resistance at ₹235.
Trade strategy
Last week, we recommended going short on June aluminium futures ₹230. Roll over this short to July. That is, exit June contract at the current market price and initiate fresh sell in July series now at ₹229. Add shorts if the price rises to ₹235. Place stop-loss at ₹240.
When the contract drops below ₹225, revise the stop-loss to ₹232. Bring the stop-loss further down to ₹222 when the price touches ₹215. Book profits at ₹210.
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.