MCX Aluminium News by Stock Advisory Company

The aluminum futures contract on the Multi Commoaluminumange (MCX) fell breaking below the crucial support level of ₹135 a kg last week.


However, the contract failed to sustain lower and reversed sharply higher after making a low of ₹135.5 on Wednesday. The strong upwards reversal from the low of ₹135.5 suggests that the contract lack fresh sellers to drag it strongly below ₹137. It also indicates that the contract attracts fresh buying interest at lower levels.

The contract is currently trading at ₹141 per kg. The near-term outlook is positive. Immediate resistance is at ₹143 which is likely to be tested in the near-term. Inability to break above ₹143 can drag the contract lower towards ₹140 or even ₹137 again.

But, if the contract manages to break above ₹143 in the coming days, it can move further higher to test the next crucial resistance levels of ₹145 and ₹146. A strong break above ₹146 is needed for the contract to gain fresh momentum. Such a break will increase the likelihood of the contract targeting ₹150 over the medium-term.

On the other hand, the outlook will turn negative only if it breaks and closes decisively below ₹137. Such a break will increase the likelihood of the contract tumbling towards ₹133 on the back of profit-booking.

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