ALUM.N PULLBACK ON TOPThe stock is in a clear long-term uptrend starting from mid-2022, defined by the major ascending trendline. Since early 2024, the price action has accelerated within a tighter ascending channel (dashed lines).
The key technical development is the recent interaction with the long-term Resistance zone established in early 2022, located between approximately LKR 17.0 and LKR 18.5. The stock successfully broke above this significant resistance zone in mid-2025 and is currently trading above it. This breakout from a multi-year consolidation pattern is a strong bullish signal.
Current Price Action and Support
The current price of LKR 20.2 is showing signs of a potential pullback after testing the upper boundary of the tighter ascending channel. The most recent weekly candle closed lower, indicating short-term selling pressure.
Immediate Support: The primary and most critical support level is the recently broken Resistance zone (LKR 17.0 - LKR 18.5), which is now expected to act as a strong support (a principle known as "role reversal").
Dynamic Support: The lower trendline of the tighter ascending channel also offers dynamic support just above this horizontal zone.
Projection
The overall technical structure is bullish, driven by the multi-year uptrend and the breakout above the major 2022 resistance.
The most likely projection is a bullish continuation. The current short-term weakness is likely a healthy retest of the broken resistance zone (LKR 17.0 - LKR 18.5). If the price holds above this level, it confirms the breakout, and the stock is projected to resume its uptrend, targeting new highs. The immediate long-term target, based on the height of the previous consolidation, could project towards the LKR 25.0 - LKR 26.0 area.
A significant weekly close below the former resistance zone of LKR 17.0 would invalidate the strong bullish structure and suggest a deeper correction toward the long-term major trendline (currently near LKR 15.0). However, the current momentum and structure favor the upside.
Trade ideas
ALUM.N0000Buy Zone mentioned in above chart.
Disclaimer: The information and analysis provided in this publication are for educational purposes only and should not be construed as financial advice or recommendations to buy, sell, or hold any securities. The author and TradingView are not responsible for any investment decisions made based on the content presented herein. Always consult a financial professional before making any investment decisions.
ALUMWith the breakout of both Falling Wedge and Inverted Head and Shoulders patterns, the stock may reach Fibonacci 0.5 levels. However, a retest of the neckline at 7.30 is also possible. To manage risk, traders may consider placing their stop loss at the previous higher low of 7 or just below the neckline.




