Aluminium trend analysis 26 to 30 May 2014
Aluminium daily chart technical analysis
Aluminium future on last trading session closed at 104.35 with gain. On daily chart, aluminium is in downtrend but momentum is bullish and that why we seen recovery and prices are heading towards average to test them and possible breakout. Aluminium future is still trading below month and 3 month averages but with recovery patterns on indicators. For next week, aluminium future support zones are 102 and 100 rupees while on upside expect strong resistances at 105 and 106.5. 105 is 1-month average and 106.5 is 3-month average level. Indicators are with bullish recovery patterns.
Metal traders here keep buy on dips view near 102 with strict stop loss below 100 rupee for targets 105 and then 106.5 in next week.
Aluminium weekly chart technical analysis
Aluminium future this week closed with 2.25% gains. On weekly chart, Aluminium future price trend is down but momentum is on recovery side. This was first positive closing week after last 5 weeks straight negative closings. This week Aluminium future hit high at 104.5 while low as at 101.25. Total 3.5-rupee weekly range or 3% volatility and closed with gain. Aluminium future is still trading way below major averages with recovery patterns on indicators.
From medium to long-term view, Aluminium future has support zones at 101, 98 rupees while on upside 108, and 111 rupees are strong supply zones. 108 is 6, 12 and 24 month average level.
Investors follow buy and accumulate view near 101 for targets 108 and above in upcoming weeks.