Commodity Radar: Trends positive for aluminum trade. Time to accumulate up to 6% in the short term upside down

Aluminum Futures traded on Friday in the red in the middle of market insurities after the Trump administration had unveiled a series of new rates that will come into effect in one week.

August Aluminum Futures traded around 4:30 pm around 4 p.m., a decrease RS 1.15 or 0.46%, following the weakness in international prices. Three months of contracts on the LME floated around $ 2,565, a decrease of 1.4%.

In comments on current trends, Ajit Mishra, senior vice president – said research at Religare Broking, that aluminium prices have found support by improving the demand for views in China and sharpening the worldwide offer.

“Marktsentiment is versterkt omdat handelaren de vooruitgang bij de handelsbesprekingen van de VS-China hebben gevolgd, wat de vraag van industriële metaal kon stimuleren. Het vertrouwen steeg ook nadat Beijing beloofde de industriële groei te stabiliseren, een CNY 1,2 biljoen hydro-elektrisch damproject onthullen om infrastructuur-geleide economisch momentum te ondersteunen,” voegde hij toe.

Technical prospects

Aluminum has organized a strong recovery compared to the lows of March of RS 228 and now acts near RS 250. Prices are comfortable above the 50-day and 200 days of progressive averages, which confirms Bullish Strength.

There is also a golden crossover (50 DMA intersection above 200 DMA), which indicates a trend in the medium term. With prices approaching the key resistance in the zone of RS 255-257 (earlier demolition area), any consolidation or mild profitbooking cannot be excluded.

Aluminum daily graph

Trade strategy

Traders can look at DIPS at RS 248-250, with a stop loss under RS 241. Winning goals are placed on RS 258 and RS 264.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)