MCX-Aluminium stuck within a narrow range

<p>The Aluminium futures contract on the Multi Commodity Exchange fell below a key support level of INR 121.5 a kg in the past week.</p> <p>However, the contract has not witnessed any strong follow-through selling after this break and has been stuck in a narrow range between INR 120 and INR 121 since then.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/BL20-ALUMINIUM_2_3176783f.jpg" alt="news" width="455" height="339" /></p> <p>It is currently trading at INR 120.5 per kg.</p> <p>The 200-day moving average support is at INR 119.5, which is likely to be tested as long as the contract trades below INR 121.5.</p> <p>If the contract manages to sustain above the 200-day moving average support, a range bound move between INR 119.5 and INR 121.5 is possible for some time.</p> <p>A breakout on either side of INR 119.5 or INR 121.5 will then determine the next move.</p> <p>{googleAdsense}</p> <p>A decisive break below INR 119.5 can increase the selling pressure. Such a break can drag it to INR 117 or even INR 115 going forward.</p> <p>On the other hand, the downside pressure will ease if the contract manages to decisively advance above INR 121.5 from either current levels or reversing higher after testing the 200-day moving average support level of INR 119.5.&nbsp;</p>