Mcx aluminium future in month of September, closed at 137 with gain. This was second gaining month for mcx aluminium future and in these 2 months we saw strong rally from low of 121 rupee to high of 141+. In September, mcx aluminium future hit high at 141.4 while recorded low of 131.5. Total almost 10 rupee month range and positive closing for mcx aluminium future on follow up buying in month of September.
For month of October, mcx aluminium future has major support at 136.9 and above it remain strong and buy and accumulate for big upside targets. On upside mcx aluminium future will have resistance as well as buy targets around 142 and then 146 rupee for October series. If fails to hold 136.9 support and breakdown decisively with strong price action and on volume then go short with stop loss for bearish targets up to 132.5 and then 127 rupee.
On daily chart, mcx aluminium is in correction and consolidation phase after hitting recent high of 141.4 rupees. On downside 136.9 is major support and above it outlook and trading strategy will remain buy and accumulate for upside targets of 142 and 146+. Daily chart RSI is at 65 with flat bearish divergence and MACD is at 1.34 with bullish crossover and buy signal given at 136 rupee.
So metals commodity traders, watch 136.9 rupee level closely. If aluminium hold that level then follow buy and accumulate view for bullish targets and if breakdown below it then follow sell on rise trading strategy for deep downside targets.