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.
