MCX-Aluminum: Sell Below 99.70 | Stop @ 102.60 | Target @ 96.45 — 93.20
Risky trader: Sell CMP 101.90 | Stop @ 102.60 | Target @ 100 — 96.45 — 93.20
MCX Aluminum Outlook Weak
The technical chart of MCX Aluminum shows Bear Flag Pattern formation. The prices has fallen from 106.20 level to the support at Point A of 99.70. Thereafter prices went in to the consolidation phase and trading was restricted within 102.60—99.70 range. Currently prices are trading at 101.90 just below the resistance level of 102.60 and is expected to move and test the support level of 99.70. This has formed a Bear Flag Pattern.
As per the chart pattern, a sustained trading below 99.70 level will give a breakdown to the Bear Flag Pattern and the Aluminum prices would weaken further.
Height of the Pole is 6.5 points, the difference between 106.20 and 99.70. A breakdown below 99.70 will bring the lower target of 96.45, which is the 50% of the Pole. The next target could be 93.20, which comes to 100% of the Pole Height.
However, if Aluminum prices reverts from the current level crossing the higher resistance level of 102.60 then the target would be 106 levels which is unlikely as of now.
