Aluminium futures volatile after record high

Aluminium futures has seen high volatility over the past week. The contract hit a record high of ₹361.25 on January 29 but then it fell to a low of ₹295 on February. It is currently trading at ₹314.

Although the trend has not turned bearish yet, the price action shows that the resistance at ₹325 is strong. Consequently, the rally above ₹325 that occurred last week did not sustain.

Given the current price action, there is a good chance for the price to drop from the current level. The nearest notable support is at ₹295, where a trendline and the 50 per cent Fibonacci retracement coincides. Support below ₹295 is at ₹285.

On the other hand, if aluminium futures rally past ₹325, it can extend the upswing to ₹350.

Overall, while the uptrend remains true, we might see some price correction.

Trade strategy

Short aluminium futures (February) at ₹320 and place a stop-loss at ₹328. When the price slips to ₹310, revise the stop-loss to ₹320. Book profits at ₹295. Risk averse traders can avoid this position.

Published on February 3, 2026