MCX Aluminium may trade between 136.8-140 levels
Commodity Online | July 16 2020
UPDATED 10:40:37 IST

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MCX Aluminium may trade between 138.9-147.9 levels

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MCX Zinc under short covering; Resistance seen at 186.1

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Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 9.85% to settled at 769 while prices down 0.7 rupees.

Now MCX Aluminium is getting support at 137.5 and below same could see a test of 136.8 levels, and resistance is now likely to be seen at 139.1, a move above could see prices testing 140.

Aluminium yesterday settled down by 0.5% at 138.1 amid rising tensions between the US and China and hopes for a coronavirus vaccine.

China’s economy likely returned to modest growth in the second quarter after a record contraction, as lockdown measures ended and policymakers announced more stimulus to combat the shock from the coronavirus crisis.

The world’s second-largest economy likely grew 2.5% in April-June from a year earlier, reversing a 6.8% decline in the first quarter  the first contraction since at least 1992 when official quarterly gross domestic product (GDP) records started.

China’s services sector, which is dominated by smaller companies, has not rebounded as quickly as industrial production, though there are some signs that consumer confidence is gradually improving.

Data showed the country’s imports in June rose for the first time this year as stimulus boosted demand for building materials, while exports also edged up as overseas economies reopened after lockdowns.

Global primary aluminium output rose to 5.448 million tonnes in May from a revised 5.274 million tonnes in April, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production increased to 3.105 million tonnes in May from a revised 2.997 million tonnes in April, it added.

Trading Ideas:
--Aluminium trading range for the day is 136.8-140.
--Aluminium prices remained under pressure amid rising tensions between the US and China and hopes for a coronavirus vaccine.
--China’s economy likely returned to modest growth in the second quarter after a record contraction, as lockdown measures ended.
--China’s services sector, has not rebounded as quickly as industrial production, though there are some signs that consumer confidence is gradually improving.

Courtesy: Kedia Commodities