Aluminum bulls warming up
The adjacent chart shows the price movement of MCX Aluminium continuous contract. It is trading in an upward rising channel. Also, it has taken support at the 20 DMA and has bounced back from there. It has possibly completed the correction, wherein it retraced ~50% of the previous upmove. The momentum indicator has bounced back from the “zero line”. It is headed higher towards the swing high of Rs 128.25. The bulls are likely to take charge once it breaks above Rs 128.25. On the way down, Rs 123.90-122.70 will act as the support zone in the near term.