Copper, Aluminium at multi-year highs; charts suggest more upside likely

Copper futures topped the $10,000-mark for the first time in 2 years, Aluminium futures quoted at 2-year highs earlier this month; here are the key levels to watch out.

Base metals have witnessed a strong rally on the commodity exchanges, with copper and aluminium futures trading around 2-year highs. Meanwhile, precious metals such Gold and Silver futures hit record highs in recent days.

Technical charts suggests, that the base metal may cover more ground on the upside, while Gold and Silver futures may consolidate in the near-term.

Copper

Current Level: $10,010/ Rs 858

Upside Potential: 3.7%

Copper futures have rallied 23 per cent in the last 11 weeks in the international market. The base metal commodity is presently quoting above the higher-end of the Bollinger Bands on the weekly and monthly charts, thus suggesting that the bullish bias will remain intact as long as the commodity sustains above $9,625 levels, with near support seen at $9,950 levels. 

On the upside, the Copper can extend the rally to $10,375-odd levels. 

On the MCX, near support for Copper futures is seen at Rs 856, and the commodity is expected to trade with a positive bias as long as it holds above Rs 823.50. On the upside, the MCX Copper futures may challenge its all-time high of Rs 886 registered in March 2022.

Aluminium

Current Level: $2,560/ Rs 241

Upside Potential: 5.5%

Earlier this month, Aluminium futures were seen quoting around 20-month highs at $2,725 levels. The commodity has retraced around 6 per cent from its peak, and presently seems to be headed to test support at its 20-DMA at $2,530 levels. The momentum seems to be in favour of the commodity. Hence, in case it finds support around 20-DMA, Aluminium can bounce back to $2,700 levels again.

The MCX Aluminium futures may test 20-DMA support at Rs 232 levels, before resuming its uptrend, the daily chart suggests.

Gold futures

Current Level: $2,342/ Rs 71,300

Downside Risk: 5.3%

Gold futures hit a fresh all-time high of $2,448.80 on April 12, post which the precious metal has consolidated and declined over $100 from its peak. Gold futures presently trade around $2,340 level, which is just below the 20-DMA, that stands at $2,352.

Technically, the next major support for Gold is seen at $2,220, i.e. the 50-DMA. However, in case, Gold prices climb above the 20-DMA and trade consistently above the same, Gold prices can jump back atop $2,400 levels.

In the Indian context, the 20-DMA for Gold futures stands at RS 71,330. Gold prices could test support at Rs 69,300 and Rs 67,500 levels, in case of a steep correction. On the upside, Gold prices can retest Rs 73,350 levels.

Silver 

Current Level: $27.453/ Rs 80,500

Downside Risk: 2.6%

Silver futures are trading 8 per cent lower than its recent record high of $2.905. The commodity is trading below its 20-DMA, which implies near resistance at $27.848. On the downside, Silver futures can test the lower-end of the Bollinger Bands on the daily chart at $26.863 in the near-term. 

On the MCX, Silver May futures trade at Rs 80,500 levels, below its 20-DMA at Rs 81,550. On the downside, Silver is likely to test Rs 78,400 levels in the near-term.