Hold longs on MCX aluminium by admin- Friday, January 7th, 2022 08:26:35 AM
The continuous contract of aluminium at the Multi Commodity Exchange (MCX), which changed into flat for the beyond couple of weeks, rallied on Wednesday and closed above the important degree of ₹228.
Thus, the bulls seem to be gaining traction and prices are probably to move up.
Supporting the high-quality outlook, the relative power index (RSI) and the moving average convergence divergence (MACD) at the daily chart are showing correct bullish momentum.
Also, the settlement has been forming better lows and better highs over the last two months.
Notably, we had cautioned long positions in aluminium futures at some point of the very last week of December at ₹225 and ₹220. Recommended stop-loss changed into at ₹214.
Traders, who already keep longs, can continue to hold but tighten the stop-loss to ₹220.
On the alternative hand, one can also keep in mind clean positions at present day degree with equal forestall-loss i.E., ₹220.
For each current and new longs, whilst the contract rallies beyond ₹238, revise the stop-loss to ₹228.
Liquidate the longs at ₹250 as there can be a fee correction off this level.