MCX Aluminium Contract Can Break ₹338 and Fall to ₹328. Aluminium Prices Have Been Coming Down Over the Last Few

Aluminium prices have been coming down over the last few days. The Aluminium Futures contract traded on the Multi Commodity Exchange made a high of ₹349 per kg last week and has turned down from there. It is currently trading at ₹340 per kg.

The fall from the high of ₹349 made last week indicates that the recent rise is just a correction. So, broadly the downtrend that had begun in June still remains intact. Immediate support is at ₹338. Failure to bounce back from this support will increase the downside pressure.

In that case, the MCX Aluminium Futures contract can see a sharp fall to ₹328 in a week or two. Such a fall will also keep the broader downtrend intact. To avoid this fall the contract has to sustain above ₹338. If the contract manages to bounce back from around ₹338, then a rise to ₹350 is possible.

Our preference is to see the MCX Aluminium contract break ₹338 and fall to ₹328. Traders can go short on a break below ₹338. Keep the stop-loss at ₹342. Trail the stop-loss down to ₹336 when the contract goes down to ₹333. Revise the stop-loss lower to ₹334 and ₹332 when the price touches ₹332 and ₹330 respectively. Exit the shorts at ₹329. 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.