MCX aluminium weekly report 5-9 May 2014
aluminium daily chart technical analysis
Mcx aluminium future last closed at 106.2 with loss. On daily chart, aluminium future is downtrend and trading below all short-term averages. Daily chart indicators patterns are also bearish suggesting downside for metal prices in upcoming trading sessions. On chart, 140 and 102 are downside support zones of previous swing bottoms. While on upside 108 and 109 are strong supply zones of 3 month and 1 month averages respectively.
Traders below 108 keep sell on rise view and expect targets of 104 to 102 in next week. Rupee strength will put more pressure on prices.
aluminium weekly chart technical analysis
Mcx aluminium future this week closed with 4% loss with strong bearish breakout. This commodity is closed below its major averages with sharp price action, which is very significant. This was third losing week for aluminium and in these 3 weeks lost 8-rupee gains from prices. This week aluminium future hit high at 111.3 while low was at 105.7. Total 5.5 rupee or 5% move and closed in deep red.
From medium to long-term view, 100 and 97 rupees are support zones while on upside 108 and 113 are strong resistances for now. 108 is major averages zone and will be strong supply area for prices in future. Indicators turned bearish with this week move.
Investors below 108 keep shorting view for aluminium and expect target of 100 rupee in upcoming weeks.