Technical Outlook & Trading Strategy:-
The price of aluminium has pulled back to its key resistance zone of Rs 111—Rs 111.50 levels during the previous session after hitting a low of Rs 109.10 levels on 12th July, 2011.
But, the price couldn’t sustain above these resistance zones and this is a clear sign of weakness in the counter.
The Key momentum indicators are in sell mode despite the recent pullback. Thus, with the overall technical structure of aluminium being extremely negative we believe that this is the right opportunity for traders to take fresh short positions in this base metal.
We recommend traders to sell between Rs 110.70--Rs 111.30 levels with a stop loss of Rs 111.95 levels for downside targets of Rs 110 / Rs 109 levels expected to be achieved over the upcoming 1-2 sessions of trade.
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