Aluminium yesterday traded with the negative node and settled -1.31% down at 106.75 as the European debt bailout negotiation bogged down again overnight following a rating cut for Spain and divergence on EFSF expansion.
Later Fed said the US economy continued to grow slowly in September, but with a dim outlook, which led to a selling wave for stocks and commodities at the tail of previous day’s trading. LME aluminum closed USD 29/mt or 1.31% lower at USD 2,181/mt on October 19th. Highest and lowest prices during the day were USD 2,224/mt and USD 2,178.8/mt.
LME aluminum is expected to meet resistance at USD 2,200/mt and likely to move downward today as investors’ optimism towards a final solution for the euro zone debt crisis to come out this weekend gradually faded out.
In yesterday's trading session aluminium has touched the low of 106.65 after opening at 108.05, and finally settled at 106.75. For today's session market is looking to take support at 106.1, a break below could see a test of 105.5 and where as resistance is now likely to be seen at 107.9, a move above could see prices testing 109.
Trading Ideas:
Aluminium trading range is 105.5-109.
Aluminium head lower to settle down by more than 1% as eurozone debt woes weigh
Fed said the US economy continued to grow slowly in September, but with a dim outlook
LME aluminum is expected to meet resistance at USD 2,200/mt and likely to move downward
Courtesy: Kedia Commodities
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