Technical Outlook & Trading Strategy:-
The price of Aluminium appears to be forming a head and shoulder pattern on the daily charts.
The head and shoulders pattern is an extremely bearish pattern and has negative implications on the future price movements of a stock.
A break below the near term support of Rs 112.50 levels on the intraday charts will see the price of Aluminium head towards the neckline support of Rs 111.70 levels in the near term.
A close below this neckline support will see an increase in the selling pressure which could drag the price to Rs 107.50 levels.
Traders can add to short positions on the break below the neckline support levels mentioned above.
A stop loss of Rs 113.75 levels have to be maintained on all the short positions taken below 112.50 levels.
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