MCX Aluminium may trade between 128.9-131.5 levels
Commodity Online | May 26 2020
UPDATED 10:40:03 IST

NCDEX Chana under long liquidation; Support seen at 4100

MCX Mentha Oil likely to move in a range of 978.4-1005.4

MCX Cotton under short covering; Support seen at 15870

MCX Aluminium may trade between 136-137.8 levels

NCDEX Jeera under short covering; Resistance seen at 13820

Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 22.84% to settled at 726 while prices down 0.55 rupees.

Now MCX Aluminium is getting support at 129.5 and below same could see a test of 128.9 levels, and resistance is now likely to be seen at 130.8, a move above could see prices testing 131.5.

Aluminium yesterday settled down by 0.42% at 130.15 as mounting Sino-U.S. tensions and concerns about a rebound from the coronavirus-led economic slump curbed risk appetite and demand for metals.

China's plans to impose a new national security legislation on Hong Kong drew a warning from U.S. President Donald Trump that Washington would react "very strongly" against the attempt.

China omitted a 2020 economic growth target for the first time and pledged government support for the economy in Premier Li Keqiang’s work report, launching the country’s annual parliament meeting.

It is the first time that China has not set a target for gross domestic product (GDP) since the government began publishing such goals in 1990.

The world’s second-biggest economy contracted 6.8% in the first quarter from a year earlier, shrinking for the first time in decades, as the outbreak of the new coronavirus, which started in the central Chinese city of Wuhan, paralysed production and hit spending.

Aluminium stocks in ShFE warehouses extended their downward trend, falling 8.6% from a week earlier to a 3-1/2-month low of 322,060 tonnes, amid solid demand in China, the world's biggest user and producer of the light metal.

China has set a budget deficit target for this year of “at least” 3.6 percent of gross domestic product (GDP), Premier Li Keqiang said in his work report at the start of the annual parliamentary gathering. The target compares with the 2.8 percent target set for 2019.

Trading Ideas:
--Aluminium trading range for the day is 128.9-131.5.
--Aluminium dropped as mounting Sino-U.S. tensions and concerns about a rebound from the coronavirus-led economic slump curbed risk appetite.
--China omitted a 2020 economic growth target for the first time and pledged government support for the economy in Premier Li Keqiang’s work report.
--Aluminium stocks in ShFE warehouses extended their downward trend, falling 8.6% from a week earlier to a 3-1/2-month low of 322,060 tonnes.

Courtesy: Kedia Commodities