Aluminium futures may dip – The HinduBusinessLine

Aluminium futures hit a three-year high of ₹321.30 (per kg) on January 14. But the price action shows that it has been charting a sideways trend since early last week – it has been consolidating between ₹314 and ₹321 – and is now trading at ₹316.

Given the prevailing conditions, the path of the next leg of short-term trend depends on the direction of the break of the ₹314-321 range.

That said, since May, aluminium futures has had a sharp rally without much correction. Considering this and that there are barriers at ₹321 and ₹325, there is a good chance for the price to soften.

Although the trend might not turn bearish, the contract can see a temporary dip to ₹300, the 23.6 per cent Fibonacci retracement of the latest bull run.

On the other hand, if aluminium futures regain traction and breaks out of ₹325, it can open the door for a fresh rally, potentially to ₹350.

Overall, although the trend is bullish, there is a resistance ahead and also, the risk-reward ratio is good for short positions at the current market price. So, traders can consider going short.

Trade strategy

Sell aluminium futures at ₹316 with a stop-loss at ₹322. Book profits at ₹300. Risk averse traders can avoid this trade.

Published on January 20, 2026