The commodity is trading in a range or we can say a rectangle formation. The consolidation has happened at the top of the commodity near its all time high. The commodity primary trend has been positive for a very long period, almost more than a year. Are we going to see a more upside move in the commodity or the commodity market is going to correct? This will be the biggest question, as we know that the commodity market is 2nd last to Top out. We have not seen the BOND market making a top yet nor the stock market so we can right now say that the commodity has made a TOP; but yes we might see some throwback in the commodities, we can profit from that throwback with maintaining strict SL.

In Aluminium we have seen consolidation, trading in consolidation is a very bad idea as there might be many whipsaws, we will wait for the commodity to close above the consolidation zone or below the consolidation zone and trade accordingly.

If the commodity closes below the consolidation area we will go short in aluminium with a SL 2945 for a TP of 2630 and 2410, if the breakout is on the upside SL will be the same and the target will be 150-200 points on the upside.

The ADX is pointing downwards and when the ADX is pointing downward we avoid trading and we suggest to close the existing position.

The DMI's are near each other. We need to wait for which DMI will overpower the other and what would they predict ahead, till the time its suggesting flat.

Advice : Trade as the breakout is seen with mentioned target and SL

ALUMINIUM

Oct 03 2021