MCX ALUMINUM SHORT TERM VIEW

By: Admin
39094

Insignia Consultants

New Delhi

Thursday, February 25, 2021 TIME 10:44 PM IST                          

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MCX ALUMINUM SHORT TERM VIEW

Aluminum demand will rise multiple times over the coming years. New technologies are on the verge of coming which will use aluminum for battery in vehicles. Global per capital usage of aluminum will increase as well. However right now aluminum price rise is just due to hyper bullish investment demand of industrial metals. Fundamentals of aluminum does not justify the bullish trend.

MCX Aluminum 31st March 2021:  (previous day close/CMP Rs.175.80)

Support: 149.10, 154.90, 161.10 and Resistance: 179.30, 185.10, 190.90 and 209.50

View till end April:  Aluminum has to trade over 161.10 to rise to 190.90 and 209.50. Aluminum will crash if it does not break 190.90 by end April to 149.10 and 130.50.

A bit on Copper-Aluminum spread:  Copper-Aluminum spread is nearly at an all-time high Rs.552.10. This year’s average closing spread is at 460.30. Copper price has to move into a short term bearish zone for this spread to fall. The copper-aluminum spread will only rise further if copper price continues to rise.

Aluminum and copper are substitutes in a large number of consumer durables and industrial applications. One should always look at the copper-aluminum gap and its trend for capex.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.Website www.insigniaconsultants.in. Prepared by Chintan Karnani.

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Disclosure: Members, employees, directors, clients and all other people associated with “Insignia consultants” do trade in MCX metals and energies. They may or may not have positions on the trading strategies mentioned in this report. They may also have open positions in MCX metals and energies futures in trading strategies other than those mentioned in this report.

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NOTES TO THE ABOVE REPORT

ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED

PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS

PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.

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APPROPRIATE STOP LOSSES PER LOT IN INDIAN RUPEEES ON THE TRADING CALLS GIVEN IN THIS REPORTTHE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT

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