Comments
After a fall in prices, Aluminium futures (continuous contract) has become range-bound.
The contract on MCX has largely been oscillating between ₹202 and ₹205 for the last couple of weeks.
However, the contract has seen a bounce-off around the ₹200-202 support levels and is currently trading at around ₹207. The price is now above the 20-day moving average, giving it a bullish bias.
Against this backdrop, we expect the contract to see an up move from the current levels. Although the contract might face a minor resistance at ₹215, it is likely to go up towards ₹225-230.
Also read: Nifty Prediction – March 29, 2023: High risk appetite traders can go long
On the other hand, if the contract declines from the current levels and slips below the support at ₹200, the chances are high for aluminium futures to see another leg of a decline. Support below ₹200 are at ₹192 and ₹186.
Trade strategy
A couple of weeks back, we suggested going long at ₹206 with stop-loss at ₹200. Hold this trade. You can buy now with the same stop-loss if you have not initiated earlier.
When the contract touches ₹215, modify the stop-loss to ₹210. Book profits at ₹228.
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.