Aluminium yesterday traded with the range bound node and settled 0% flat at 109.9 tracking LME three-month aluminum initially hit USD 2,299/mt on Wednesday but closed down USD 3.5/mt or 0.16% at USD 2,251.5/mt due to worries towards worsening of the Greek debt crisis.
LME aluminum stocks climbed further overnight, by over 10,000 mt to above 5.03 million mt, a record high.
While demand stays weak, climbing stocks mean LME aluminum is facing heavier pressure. China will announce its CPI data for January today, trading will be cautious ahead of its release.
During early US and European trading session as China's central bank vowed to support the country's property market, a move seen by investors as a signal of big demand from the world's largest Copper consumer.
However, Greek debt talks later failed to yield any result, which continued to weight down markets. Combined with the fact market focus shifted to important Chinese economic data due Thursday, some investors made profit-taking.
In yesterday's trading session Aluminium has touched the low of 109.5 after opening at 109.85, and finally settled at 109.9.
For today's session market is looking to take support at 109.1, a break below could see a test of 108.2 and where as resistance is now likely to be seen at 111.2, a move above could see prices testing 112.4.
Trading Ideas:
Aluminium trading range for the day is 108.23-112.43.
Aluminum closed flat as pressure seen from LME aluminum stocks which climbed further overnight, by over 10,000 mt.
China will announce its CPI data for January today, trading will be cautious ahead of its release.
Aluminium daily stocks at Shanghai exchange came up by 8016 tonnes
Courtesy: Kedia Commodities
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