Aluminium weekly tips 12 to 16 May 2014
Aluminium daily chart technical analysis
ALUMINIUM future on last trading session closed at 103.9 with loss. On daily chart, aluminium future price trend and momentum both are down. Aluminium prices are trading below short-term averages but with oversold indicators. On upside 106 is first resistance level and then 107.8 is next resistance level. 107.8 is 1 and 3 month bearish crossover level. Indicators pattern are bearish but near oversold zone so expect technical short covering ahead.
Traders here keep buy on dips view for next week and maintain stop loss below 101 for upside technical bounce back targets of 105-107.
Aluminium weekly chart technical analysis
ALUMINIUM future this week closed with loss of 2.17%. This was forth losing week for aluminium future and in these 4 weeks tumbled from highs of 114 to lows of 104.lost 10 rupees in last 1-month period. This week aluminium future made high at 107.05 while low was at 103.6. Total 3.5-rupee range or 3% weekly swing and closed with loss. Weekly chart indicators pattern is bearish suggesting downside for prices.
For aluminium, 100-103 is major demand zone and many times given strong reversal Bull Run from these levels for investors, any correction below 103 will be accumulation opportunity with strict stop loss below 100 for upside targets 108-110.5.