The daily chart of MCX Aluminium presents a technical picture where the price has established support at previous swing lows, evidenced by a gap-up opening. This positive momentum is further confirmed by the RSI (Relative Strength Index) indicator bouncing off the oversold zone, suggesting renewed buying interest.
While the support level currently lies around 194.60, a move below this could signal a resumption of the previous bearish trend. Therefore, traders should closely monitor this level to gauge the direction of the market.
The resistance for the day is positioned around 197.10/198.75. If the price manages to break above this resistance, it could potentially indicate a stronger upward move. However, until the price remains above the 194.60 support, a sideways to positive bias is expected.
Trading Strategy:
In light of the current technical analysis, here's a potential trading strategy for MCX Aluminium:
- Entry: Buy near the support zone of 194.60, with a stop-loss placed below this level.
- Target: Target the resistance level of 197.10/198.75, with the potential for further upside if the resistance is breached.
- Exit: Exit the trade if the price closes below the 194.60 support, indicating a potential reversal of the current trend.
Note: This is just a suggested trading strategy based on the current technical analysis. It is recommended to conduct further research and consider your own risk tolerance before making any trading decisions.
