Aluminium futures has been range bound in recent weeks. The chart of September Aluminium contract (₹255.50/kg) shows that it has been oscillating between ₹250 and ₹257 since mid-June.
Therefore, there is no definite indication about the next leg of trend. In case the contract breaks out of ₹257, it can establish a fresh leg of rally. This can lift the price up to ₹265. Note that ₹265-268 is a resistance. A breakout of ₹268 can take the contract to ₹292.
On the other hand, in case aluminium futures (Sep) drops from the current level of ₹255.50, it can retest the range bottom at ₹250. The price band of ₹247-250 is a support. A breach of ₹247 can turn the outlook bearish. In such a case, the contract can decline to ₹238.
Overall, as it stands, aluminium futures is in a sideways trend. Nevertheless, since it is trading near the top of the range, the probability for a fall is higher.
Trade strategy
Short aluminium futures (Sep) now at ₹255.50. Target and stop-loss can be at ₹250 and ₹258 respectively.
Published on September 1, 2025
