Aluminium futures has been moving in a sideways trend over the past few sessions. The December contract is currently trading at ₹280 (per kg).
Prior to the consolidation, the contract was in an uptrend. The rally was arrested by the resistance at ₹280, where a trendline also coincides.
There is a good chance for a price drop on the back of the resistance at ₹280. But such a dip is only likely to be a corrective one and not a bearish trend reversal.
The downswing can be arrested at ₹270, a support, where the 50-day moving average coincides. A resumption in the uptrend from this level can take aluminium futures to ₹285.
On the other hand, if the contract breaks below ₹270, the downtick may extend to ₹265. Notable support levels below ₹265 are at ₹256 and ₹250.
Overall, from the current level of ₹280, we expect aluminium futures to moderate to ₹270 and then see a rally to ₹285.
Trade strategy
Traders can buy aluminium futures (December) when it dips to ₹271. Place a stop-loss at ₹265. When the contract rises to ₹280, revise the stop-loss to ₹275. Book profits at ₹285.
Published on December 16, 2025
