MTECHTIPS:Buy MCX Aluminium Nov above Rs 107.50; SL Rs 105.9
MCX Aluminum seems to have completed its wave 4 down which is an A-B-C zigzag pattern. It retraced almost 50% of wave 3 and it has reversed from the lower end of the downward sloping parallel channel. In commodities since wave 5 are mostly longer than wave 3; we think that aluminum has a good probability of achieving the 78.6% retracement level of the entire fall from 117.55 to 100.70 which comes to 114. The minimum target on the upside is above the swing high of wave 3 i.e. 111.2. On the lower side 105.90 will be the crucial level to watch out for i.e. the swing low of wave 4, hence one can place a stop loss below that.