04 JULY 2016www.thehindubusinessline.com
Aluminium poised near the range resistance
Edited by : AL CIRCLE
1 min read
The MCX-Aluminium future continued to trade within the INR97-INR112 range for the sixth consecutive month. It is currently poised near INR112; the upper end of the range. If the contract reverses lower from here, it can then fall to INR105 and INR103 in the coming weeks.
On the other hand, a strong break above INR112 can take the contract higher to INR115, which is a key long-term resistance. A strong break and a decisive weekly close above INR115 will reduce the possibility of a fresh fall . Such a break can take the contract higher to INR120 or even INR125 over the medium term. But, inability to break above INR115 can drag the contract lower to INR112. If the contract manages to sustain above INR112, a sideways move between INR112 and INR115 is possible for some time. But a strong break below INR112 will increase the downside pressure and pull the contract lower to INR110 and INR108 thereafter.
On the other hand, a strong break above INR112 can take the contract higher to INR115, which is a key long-term resistance. A strong break and a decisive weekly close above INR115 will reduce the possibility of a fresh fall . Such a break can take the contract higher to INR120 or even INR125 over the medium term. But, inability to break above INR115 can drag the contract lower to INR112. If the contract manages to sustain above INR112, a sideways move between INR112 and INR115 is possible for some time. But a strong break below INR112 will increase the downside pressure and pull the contract lower to INR110 and INR108 thereafter.
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