The price of Aluminium witnessed a mild correction from its downtrend line resistance levels which brought it into its strong support zones of Rs 106.25--Rs 107.80 levels.
We would like to point out that this strong support held on even when the other base metals witnessed severe correction on the back of huge supply during the previous few sessions of trade.
The steady rise in volumes over the past few sessions of trade is probably a sign of accumulation in the counter at these support levels.
The RSI indicator has also given a buy signal backed by a positive divergence. All the above mentioned technical factors point that the price of aluminium are likely to witness a pullback towards the Rs 112.25 / Rs 113 levels and test its downtrend line resistance.
We recommend traders to buy between Rs 109.25--Rs 108.75 levels with a stop loss placed below Rs 107.45 levels for upside targets mentioned above.
MCX ALUMINIUM OCT. CONTRACT OPEN Rs 107.70 HIGH Rs 109.25 LOW Rs 107.20 CLOSE Rs 109.15
No comments:
Post a Comment