Aluminium technical analysis 19 to 23 May 2014
Aluminium daily chart technical analysis
Mcx aluminium future on last trading session closed at 102.05 with huge loss. Aluminium future is now near historic lows with strong bearish momentum. Prices are trading below all short-term averages and heading towards 100-rupee mark. On upside 104 rupee is week average and first resistance, then 106 is 1-month average level and 107 is 3-month average level. On downside, 102 and then 100 rupee are support zones. Daily chart indicators patterns are bearish and heading towards oversold zones.
Traders below 107 rupee keep short view and follow sell on rise strategy. 100 rupee to 98 rupee will be buying opportunity, as it will be heavily oversold zone so watch for that opportunity. Those are already holding shorts must trail stop loss at 104 for target 100 and below.
Aluminium weekly chart technical analysis
Mcx aluminium future this week lost 2%. This was fifth losing week for this base metal and in these five weeks period aluminum prices tumbled from 114 to 102. Almost lost 12% in very short terms on sell off as well as strong rupee pressure. This week aluminium future hit high near 106 while low was at 102. Total 4-rupee range or almost 4% swing and closed with loss. Weekly chart price trend is down with bearish indicators patterns. From medium to long-term view, 100 and 96 rupee are strong support zones on downside while on upside 108 and 113 are strong supply zones. 108 is all major averages bearish crossover level and remain as important resistance.
Investors use 100-96 rupee zone for buy and accumulation with long-term view and for targets 108 to 113.