MCX Aluminium Tips: Hey there! If you’ve been keeping an eye on the commodity market, you might have noticed aluminium futures taking a small dip on Friday. Let’s break it down in simple terms and see what’s driving this change, what the charts are saying, and how you can plan your trades.
On Friday, August 2025 aluminium futures were trading at Rs 249.30 around 4 pm, down by Rs 1.15 or about 0.46%. This drop wasn’t just a local thing—international prices on the London Metal Exchange (LME) also fell, with three-month contracts hovering around $2,565, down 1.4%. The reason? New tariffs announced by the Trump administration, set to kick in within a week, are creating some jitters in the market.
Why Are Aluminium Prices Falling?
The big news shaking things up is the new tariffs from the US. These tariffs are making traders nervous because they could affect global trade, especially for industrial metals like aluminium. When markets get uncertain, prices often take a hit as people wait to see what happens next.
- Better demand in China: China’s economy is showing signs of picking up, which is good for metals like aluminium used in construction, manufacturing, and more.
- Tight global supply: There’s less aluminium available globally, which is helping keep prices from falling too much.
- US-China trade talks: Traders are hopeful that progress in these talks could boost demand for industrial metals.
- China’s big plans: Beijing recently announced a massive CNY 1.2 trillion hydroelectric dam project. This kind of infrastructure spending means more demand for aluminium, which is a key material for such projects.
So, while the tariffs are causing some short-term worry, the bigger picture still looks promising for aluminium.
Technical Outlook: What Are the Charts Saying?
If you’re into technical analysis, here’s what the charts are telling us about aluminium prices:
- Strong recovery: Aluminium prices have bounced back nicely from their March lows of Rs 228. They’re now trading close to Rs 250, which is a solid move.
- Bullish signals: Prices are above both the 50-day moving average (DMA) and the 200-day moving average (DMA). This shows the trend is still strong.
- Golden crossover: The 50 DMA has crossed above the 200 DMA, which is a big deal for traders. It signals that the medium-term trend is turning bullish.
- Resistance ahead: Prices are nearing a tricky zone between Rs 255–257, where aluminium faced resistance before. We might see some consolidation (prices moving sideways) or profit-booking (traders selling to lock in gains) here.
In short, the trend looks good, but we might hit a small speed bump around Rs 255–257.
MCX Aluminium Tips and Trading Strategy
If you’re thinking about trading aluminium futures, here’s a simple plan to follow:
- Buy on dips: Look to buy if prices drop to the Rs 247–246 range. This is a good support zone where prices might find buyers.
- Set a stop loss: To protect yourself, place a stop loss below Rs 241. If prices fall below this, the bullish trend might be in trouble.
- Target profits: Aim for upside targets at Rs 257 and Rs 262. These are levels where prices could face resistance again.
As always, keep an eye on market news, especially about the US tariffs and China’s economic moves. They could shake things up!
Keep an eye on news about US tariffs and China’s economic plans, as they could move the market. Here’s a table with the trading strategy:
| Action | Details |
|---|---|
| Entry Point | Buy on dips at Rs 248–250 |
| Stop Loss | Below Rs 241 |
| Target 1 | Rs 258 |
| Target 2 | Rs 264 |
| Risk Management | Monitor US tariffs & China news |
Wrapping Up
Aluminium futures are feeling the heat from the new US tariffs, but the overall outlook isn’t too bad. Demand from China and tight global supply are keeping prices supported, and the technical charts are showing bullish signs. If you’re trading, stick to a solid plan—buy on dips, set a stop loss, and aim for realistic targets.
Got questions about aluminium or other commodities? Drop them below, and I’ll try to break it down for you in simple terms! Happy trading! 😊
DISCLAIMER: The views in this story are expressed by the respective experts of the research and brokerage firm. GoldSilverReports.com Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.