Aluminium yesterday traded with the positive node and settled 0.22% up at 111.55 outperforming other basemetal, pressure still there as a lack of breakthrough from European finance ministers on Greek aid, a downgrade of Italy debt rating to a negative outlook and a weaker than expected September house market index in the US all added to the bearish sentiment among investors overnight, with stock and base metals prices plunging and the US dollar index, in the contrary, surging 1.03% to finally close at 77.358.
LME aluminum hit a new yearly low of USD 2,320/mt overnight with transactions doubling to 14,245 lots.
As Greek officials were to meet their major debtors today, considering inspiring results from previous meeting, investors attached high expectation to this meeting, thereby weakening risk aversion demand. As a result, LME aluminum narrowed its loss to finally close at USD 2,343/mt, down USD 32/mt or 1.35% from previous trading day.
In yesterday's trading session aluminium has touched the low of 110.4 after opening at 111.15, and finally settled at 111.55.
For today's session market is looking to take support at 110.8, a break below could see a test of 110 and where as resistance is now likely to be seen at 112, a move above could see prices testing 112.4.
Trading Ideas:
Aluminium trading range is 110-112.4.
LME Aluminum hit a new yearly low of USD 2,320/mt as Greek officials were to meet their major debtors.
A lack of breakthrough from European finance ministers on Greek aid, downgrade of Italy debt rating to negative outlook.
Weaker than expected September house market index in the US all added to the bearish sentiment among investors.
Courtesy: Kedia Commodities
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