Aluminium: Next round begins
MCX Aluminium faced resistance near the 61.8% retracement of the entire fall from Rs124.15 to Rs102.4. The pullback unfolded in a channelised manner. From the key Fibonacci level as well as from the upper end of the channel Aluminium has fallen sharply. The move down is also unfolding in a channelised manner (white). Recently Aluminium formed a pullback that faced resistance near the upper channel line, the 40 day exponential moving average (DEMA) and the daily upper Bollinger Band. At that level it has formed a two bar reversal. The daily momentum indicator has completed the pullback cycle. Thus the base metal is set for a next round of selling. The targets on the downside are Rs103.5 – 102.4. Reversal has been kept above Rs108.3 on a closing basis.