28 Sep 2016 Aluminium Fibonacci holds the key
In terms of price pattern, MCX aluminium formed a triangular pattern in the beginning of August. The pattern broke out on the upside and the metal rose to test the previous high of Rs 113.55. Near that level, the bears rushed in to push the price down. Structurally, the base metal formed a Double Top pattern. A larger picture shows that MCX aluminium formed an Ending Diagonal pattern and entered a correction mode. It formed an impulse on the downside followed by a pull-back. The pull-back retraced 61.8% of the previous fall, which is acting as a resistance. Thus, MCX aluminium can cool off till the swing high of Rs 110.40 holds. Rs 107.50 & Rs 106 will be the key levels to watch on the downside from a short-term perspective.