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Aluminium futures has seen a sharp rise in price over the last week. On Wednesday, it closed at ₹243.95/kg.
The recent upswing has led to the contract breaking out of a key resistance at ₹238. Note that aluminium futures was oscillating in the ₹230-238 range since early April and until last week.
Now that the contract broke out of the barrier at ₹238, the outlook has turned bullish. After reaching a high of ₹245.25 on Wednesday, the price has moderated to the current level of ₹240.
We expect aluminium futures to resume the rally from the current level and touch ₹248 and ₹256 in the near term.
On the other hand, if the contract slips below ₹238, which is a support now, can result in the price moderating to ₹234 and ₹230.
However, given the prevailing price action, the bulls appear to be in control and can lift aluminium futures to ₹256 in the short term.
Trade strategy
Buy aluminium futures at ₹240 and accumulate at ₹238. Place stop-loss at ₹232. When the contract rises to ₹248, tighten the stop-loss to ₹240. On a rally to ₹252, raise the stop-loss further to ₹248. Book profits at ₹256.
Published on May 15, 2025
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