MCX Aluminium may trade between 138.9-147.9 levels
Commodity Online | August 04 2020
UPDATED 10:40:14 IST

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MCX Cotton under fresh buying; Support seen at 17950

MCX Zinc under long liquidation; Resistance seen at 196.7

MCX Copper under short covering; Resistance seen at 535.3

Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 14.21% to settled at 635 while prices up 3.5 rupees.

Now MCX Aluminium is getting support at 141.7 and below same could see a test of 138.9 levels, and resistance is now likely to be seen at 146.2, a move above could see prices testing 147.9.

Aluminium yesterday settled up by 2.48% at 144.4 as price seen supported as China said its factory activity expanded in July for the fifth month in a row and at a faster pace.

China's monetary policy should be more flexible and targeted, and its fiscal policy more proactive, as its economy still faces relatively big uncertainties, the country's top decision body said in a quarterly meeting.

The Politburo, chaired by president Xi Jinping, said the government must ensure reasonable growth of money supply and social financing with significantly lower costs, and that the next round of new financing should mainly flow to manufacturing and to small and micro firms.

China will stay committed to deeper reform and wider opening-up, and will step up efforts to expand domestic demand and increase the vitality for economic development in the face of growing uncertainties and challenges presented by the COVID-19 pandemic, according to a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee.

China’s primary aluminium output rose 2.42% year on year to 3 million mt in June (30 days), showed survey. As of the end of June, there was 36.76 million mt among 41.23 million mt per year of existing primary aluminium capacity in operation, up 180,000 mt from a month ago.

Trading Ideas:
--Aluminium trading range for the day is 138.9-147.9.
--Aluminium gains as price seen supported as China said its factory activity expanded in July for the fifth month in a row and at a faster pace.
--China's monetary policy should be more flexible and targeted, and its fiscal policy more proactive, as its economy still faces relatively big uncertainties.
--China’s primary aluminium output rose 2.42% year on year to 3 million mt in June (30 days), showed a survey.

Courtesy: Kedia Commodities