MCX aluminium: traders can stay out of the market

<p>The aluminium futures contract traded on the Multi Commodity Exchange (MCX) continues to remain range-bound and mixed for the fourth consecutive week. The sideways consolidation in the range between INR115 and INR119 per kg remains intact. The contract is currently hovering around the lower end of this range at INR115.25.</p> <p>Whether the contract manages to sustain above INR115 or breaks below it will decide the next leg of move. Traders can stay out of the market and wait for a clear trend to emerge for taking trade positions. A bounce in the coming sessions will see the contract retaining its INR115-INR119 range for some more time. In such a scenario a rise to INR119 is possible in the coming days.</p> <p>{googleAdsense}</p> <p>If the contract manages to break the range above INR119, the up move can extend to INR122 and INR123. Only a strong break and a decisive close above INR123 will bring fresh bullish momentum in the contract.</p> <p>On the other hand, if the contract fails to sustain above INR115/kg and breaks below this support, a fall to INR114 or even INR113 is possible. The region below INR114 and INR113 is a key support zone which may limit the downside in the short term.</p> <p>But a strong break below INR113 will bring renewed pressure on the contract. Such a break can drag the contract lower to INR110 or INR109.&nbsp;</p>