Aluminium futures, over the past month, has remained flat. Currently trading at ₹248/kg, it has been oscillating between ₹246 and ₹251 since mid-July.
That said, the overall bias appears positive. Until the support at ₹246 and ₹244, where the 50-day moving average coincides, stays valid, the bulls will have an edge over the bears.
There is a good chance for aluminium futures to break out of ₹251. This can trigger a quick rally to ₹260. Potential resistance above this is at ₹266.
On the other hand, if the contract falls and invalidates the support at ₹251 and ₹244, the outlook can turn weak. Consequently, it can decline to ₹236.
Nevertheless, as it stands, the broader trend remains bullish and the probability of the breakout of ₹251 is high.
Trade strategy
We had earlier suggested buying aluminium futures at ₹249. Retain this trade and consider adding longs in case the price dips to ₹247. Maintain the stop-loss at ₹243.
When the contract rises to ₹253, revise the stop-loss to ₹251. Tighten the stop-loss further to ₹254 and ₹256 when the price touches ₹256 and ₹258 respectively. Book profits at ₹260.
Published on July 17, 2025