Mcx aluminium future this week closed at 138.85 with gain. This was first gaining week for aluminium prices after week’s corrective retracement. This week mcx aluminium future hit high around 141.4 and low was at 132.15. Total almost 9 rupee weekly range and strong closing on fresh buying as well as short covering.
Mcx aluminium weekly chart, price trend and momentum are strong bullish but prices are trading way above major averages which strong bullish momentum. On downside 134.2 is 5 weeks average, 128.15 is 20 weeks average and 123 is 50 weeks average level and major long term support zone. Weekly chart RSI is at 70 and entered overbought zone with buy signal given at 121 rupee level and MACD is at 3.5 with buy signal given at 122 rupees.
For month of September, Mcx aluminium price above 130.6 will remain buy and accumulate. On upside 140 and then 145 are resistance zones as well as target levels. And this we saw high of 141.4 and aluminium future done 140 target and now watch for next target at 145.7 if sustain above 140 rupee level.
From long term view, mcx aluminum future hit its 2017 investment target of 128.9 and then given correction up to 119 rupee then reversal move hit 128.9 long term bullish target once again. Above 128.9 if holds then, next long term target will be around 141.3 and aluminium prices achieved its next investment target of 141 rupee. Above 141, will enter long term super bullish trend for next long term targets of 156 and 169 rupees.
In last 7 months, mcx aluminium given 3 positive closing while 4 negative closing and august was big month in which we saw 15 rupee rally from bottom to top and covered all correction and consolidation of last 6 months in single candle. September also opened on bullish note and aluminium prices achieved 141 rupee long term target.