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Monday, July 11, 2011

MCX Aluminium July CMP—Rs 112.40

Technical Outlook & Trading Strategy:-

The price of Aluminium has formed a bearish head & shoulder pattern on its weekly price charts and is trading below its neckline support level of Rs 112.70 levels.

The close registered below the neckline support level mentioned above is an extremely bearish sign and indicates weakness in the counter.

We expect the prices to face stiff resistance between Rs 112.70—Rs 113.25 levels on rallies and this rally can be used by traders to take short positions in the counter.

The momentum indicators are also trading in bearish mode. We recommend traders to sell between Rs 112.70--Rs 113.25 levels with a stop loss of Rs 114.80 levels for targets of Rs 110.55 / Rs 109.50 levels.

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