MCX Aluminium may trade between 139.3-141.3 levels
Commodity Online | January 17 2020
UPDATED 10:10:59 IST

MCX Mentha Oil under long liquidation; Support seen at 1150.4

NCDEX Chana under long liquidation; Resistance seen at 4097

MCX Cotton under short covering; Support seen at 19090

MCX Aluminium under fresh buying; Resistance seen at 138.4

MCX Nickel under fresh selling; Support seen at 932.3

Technically Aluminium market is under short covering as market has witnessed drop in open interest by 0.15% to settled at 3920 while prices up 0.75 rupees.

Now MCX Aluminium is getting support at 139.9 and below same could see a test of 139.3 levels, and resistance is now likely to be seen at 140.9, a move above could see prices testing 141.3.

Aluminium on MCX settled up 0.54% at 140.45 as the US dollar weakened on the signing of the US-China phase one trade deal and weaker-than-expected US producer inflation data.  Aluminium inventories in China rose this week, lifted by greater arrivals and broadly weakening consumption.

Data showed that social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, increased 20,000 mt in the week ended January 16 to 630,000 mt. The stocks barely changed in the previous week, after registering an increase of 18,000 mt in the week ended January 2 that snapped a months-long inventory downtrend.

Headline aluminium inventories in warehouses tracked by the ShFE hit their lowest in nearly two years in late December at 185,127 tonnes, an 81% drop from a record high of 993,207 tonnes in 2018. Stocks had since picked up to 193,899 tonnes on Friday, latest exchange data showed.

Data showed that stocks of 6063 aluminium billet across five major consumption areas in China rose for the second consecutive week, by 13,200 mt from Thursday January 9 to stand at 66,400 mt as of Thursday January 16. Stocks increased 3,300 mt in the previous week. The UK, France and Germany have all formally accused Iran of violating its 2015 nuclear deal, a move which could pave the way for a re-imposition of UN sanctions lifted as part of the agreement.

Trading Ideas:
--Aluminium trading range for the day is 139.3-141.3.
--Aluminium gained as the US dollar weakened on the signing of the US-China phase one trade deal and weaker-than-expected US producer inflation data.
--Aluminium inventories in China rose this week, lifted by greater arrivals and broadly weakening consumption.
--Headline aluminium inventories in warehouses tracked by the ShFE  hit their lowest in nearly two years in late December at 185,127 tonnes.

Courtesy: Kedia Commodities

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