Aluminium futures appreciated 5.2 per cent in June as it ended at ₹248.80/kg on June 30. It has been moving up over the last couple of sessions and is now approaching ₹250.
The price action shows that the contract has formed a higher base ₹246. Also, the trend has been up since early May, and the price is well above both 21- and 50-day moving averages. The nearest resistance from the current level is at ₹256.
Given the above factors, it is highly likely that aluminium futures will see an upswing to ₹256 soon. A breakout of this can lift the contract further to ₹260.
On the other hand, in case there is a decline from the current level and the support at ₹246 is breached, aluminium futures can find immediate support at ₹244, where the 21-day moving average and a trendline support coincides.
A break below of ₹244 can turn the near-term outlook bearish. In which case, aluminium futures can drop to ₹238 and ₹235.
Trade strategy
Buy aluminium futures (Jul) at ₹249 and place initial stop-loss at ₹245. Book profits at ₹256.
Published on July 2, 2025
