Aluminium yesterday traded with the positive node and settled 1.57% up at 111.7 after worsening debt crisis and bailout discrepancy in Europe, combined with market doubts over approval of US President Obama’s job act in the Congress again caused risk aversion sentiment to burn in the market, with the euro plunging and the US dollar index stabilizing at 77. European and U.S. stock markets also slipped in response.
After falling below the USD 2,400/mt mark last Friday, LME aluminum prices slipped on September 12th to USD 2,333/mt, a three-week low.
After Italy sought help from China, the metal rebounded with New York crude oil at the tail of trading before finally closing at USD 2,375/mt, up USD 8/mt or 0.34%. Market transactions will be sparse on strong wait and see sentiment which is due to a change of current-month aluminum contract expected this week.
In yesterday's trading session aluminium has touched the low of 109 after opening at 109.6, and finally settled at 111.7.
For today's session market is looking to take support at 109.9, a break below could see a test of 108 and where as resistance is now likely to be seen at 112.7, a move above could see prices testing 113.6.
Trading Ideas:
Aluminium trading range is 108-113.6.
Aluminium settled up after worsening debt crisis and bailout discrepancy in Europe.
Low interest rates and a global economy on the brink of another recession mean the bank financing deals.
Aluminium stocks in warehouses will remain intact and inflate premiums for already struggling consumers.
Courtesy: Kedia Commodities
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