Commodity Insights Aluminium by Choice Broking Ltd
Technical View
LME Aluminium 3-month contract has traded back & forth over past couple of weeks in a tight range of $2350 - $2450, after a steep decline from $2724, currently trading above its previous range at $2469 / tonne.
MCX Aluminium May contract has stable over the support-line of Rising Channel after a steep decline from 268.35. The price has moved back & forth in past couple of weeks, sustained over 100- EMA level on Weekly chart placed at 229.50.
The immediate hurdle would be at 50-EMA on Weekly chart, placed at 238.30 and breakout of this level will accelerate upside momentum in Aluminium towards its next hurdle 255. The momentum indicator, RSI is trailing towards 50 on all key time-frames. Also, we can observe a convergence on MACD alongside declining negative histograms, suggesting bullish biasness in Aluminium price.
We are expecting bullish momentum in Aluminium price in upcoming sessions, and traders may opt to buy in May contract at CMP (234.65) or on dips till 232, for the Target of 244.50, with SL @ 228.
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