NATIONAL ALUMINIUM COMPANY ON A CRUCIAL SUPPORT

5 Ara 2021

THE NATIONAL ALUMINIUM COMPANY has been on a high power bull run,the stock had been making new 52 week highs with the soaring prices of aluminium ores ,the stock has doubled from calender year low ,which clearly shows how the financials have been driven, the bull run has just started in the metal sector with rising demands across all sectors, the balance sheets of these companies are at their lifetime best performances and i am personally expecting them to show growth for the coming few years and here we are discussing about the aluminium giant NALCO, coming to the technicals now the stock has been trading a bullish channel for the past few months , we had a news based BULLTRAP in the month of october ,keeping that aside now the metal sector is facing heat ,most of the steel stocks are looking bearish and nalco is trading at the bottom edge of the channel,the stock has been consolidating for a couple of days and has given a breakout from the small range,the candle is a doji so its better to wait for a bit more confirmation for any long position ,using the volume profile from previous swing low to the high made in the bulltrap its clearly seen that the high accumulation/distribution is taking place around the range of 87-92 a breakout on the either side would drive the momentum,the monentum on down side would be quicker than the upside as the markets are highly volatile these days,90PE is adding OI for the past few days even if the stock closes in red ,this is a bullish sign but we must wait for a strong confirmation from the stock as well as the sector which is the CNXMETAL INDEX .dont miss the opportunity as the stock is placed at a high risk reward zone, upside targets are be 100/105 and the downside is more steep ,targets can be 80/75. once the trade moves in your direction donot take losses, place your SL at costs, never make losses on trades which are in green .