MCX Aluminium may trade between 139.4-141.4 levels
Commodity Online | September 12 2019
UPDATED 10:10:12 IST

MCX Mentha Oil likely to move in a range of 1258-1289.6

MCX Aluminium may trade between 138.1-140.1 levels

NCDEX Chana under long liquidation; Resistance seen at 4001

MCX Nickel likely to move in a range of 1205.6-1243

MCX Cotton under short covering; Support seen at 19580

Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 8.47% to settled at 2249 while prices down 0.65 rupees.

Now MCX Aluminium is getting support at 139.8 and below same could see a test of 139.4 levels, and resistance is now likely to be seen at 140.8, a move above could see prices testing 141.4.

Aluminium on MCX settled down 0.46% at 140.2 on profit booking after prices gained supported by five straight weeks of declines in domestic primary aluminium inventories. Concerns over China's economic outlook outweighed any optimism from a decision by Beijing to exempt some U.S. goods from additional tariffs – potentially easing tensions in a damaging trade dispute.

China's total auto sales fell 6.9% from the same month a year earlier to 1.96 million, the China Association of Automobile Manufacturers said, warning of weak sales ahead. China’s factory gate prices contracted for the second month in August and at a sharper rate, reinforcing the urgency for Beijing to step up stimulus to support the manufacturing sector and the broader economy.The producer price index (PPI), a key barometer of corporate profitability, dropped 0.8% from a year earlier in August, the National Bureau of Statistics (NBS) said.

It was the worst year-on-year contraction since August 2016, when it fell 0.8%. US job openings declined in July to a five-month low, signalling a pause in demand for workers ahead of a cooling in August payrolls growth that indicates the labour market may be gradually losing momentum. The number of positions waiting to be filled fell by 31,000 to 7.22 million, according to the Labour Department’s Job Openings and Labour Turnover Survey (JOLTS) released. The quits rate rose to 2.4%, the highest since April 2001, suggesting workers remain confident about their ability to find a job.

Trading Ideas:
--Aluminium trading range for the day is 139.4-141.4.
--Aluminium prices dropped on profit booking after prices gained supported by five straight weeks of declines in domestic primary aluminium inventories.
--Concerns over China's economic outlook outweighed any optimism from a decision by Beijing to exempt some U.S. goods from additional tariffs.
--China’s factory gate prices contracted for the second month in August and at a sharper rate, reinforcing the urgency for Beijing to step up stimulus.

Courtesy: Kedia Commodities

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