Aluminum Futures, currently trading with £ 253/kg, broke out of a resistance to £ 251 by the end of last week. It made a highlight of £ 255.45 on July 22 before it moderated to the current level.
The price action shows a bullish bias. Although the current correction can drag the contract a little more, probably up to £ 252, the wider trend Bullish remains.
The graph shows that the £ 251 outbreak has confirmed a bull flag pattern, according to which aluminum futures can collect up to £ 265 in the short term in the short term. But note that £ 260 is a potential barrier.
On the other hand, in the event that the contract extends the existing corrective step further than £ 251, it can fall further to £ 248, where it can find a trendline support.
That said, given the prevailing prize action, the chance of a fall under £ 251 is less likely.
Trade strategy
We had previously suggested buying aluminum futures at £ 249. Because the contract hit £ 253, the revised stop-loss would now be at £ 251. Retain this trade.
Tighten the stop loss to £ 254 and £ 256 when the price reaches £ 256 and £ 258 respectively. Book profit at £ 260.
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Published July 24, 2025
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