MCX Aluminium may trade between 140.4-142.6 levels
Commodity Online | July 30 2020
UPDATED 10:40:49 IST

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MCX Aluminium may trade between 144.3-147.9 levels

MCX Nickel likely to move in a range of 1051.4-1097

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MCX Zinc under long liquidation; Resistance seen at 190.6

Technically Aluminium market is under short covering as market has witnessed drop in open interest by 0.88% to settled at 562 while prices up 0.55 rupees.

Now MCX Aluminium is getting support at 141.1 and below same could see a test of 140.4 levels, and resistance is now likely to be seen at 142.2, a move above could see prices testing 142.6.

Aluminium yesterday settled up by 0.39% at 141.75 amid weak US dollar and domestic low inventories of primary aluminium.

Tensions between the world’s two largest economies rose as the US consulate in Chengdu shut down in compliance with a retaliatory measure from Beijing, after Washington ordered the closure of the Chinese consulate in Houston.

Data published Monday showed that profits at China’s industrial firms rose for a second straight month and at the fastest pace in over a year, adding to signs the country’s economic recovery from the coronavirus crisis is gaining momentum.

The statistics bureau said on Monday that profits at China’s industrial firms rose 11.5% year-on-year in June to 666.55 billion yuan ($95.27 billion) – marking the quickest profit growth since March 2019.

May marked the sector’s first monthly growth in earnings since November, before the onset of the coronavirus pandemic. For January-June, industrial firms’ profits fell 12.8% year-on-year to 2.51 trillion yuan, but easing from a 19.3% dive in the first five months.

German business sentiment saw a further recovery in July, with the Ifo Institute’s business climate index on Monday climbing more than expected to 90.5 from an upwardly revised 86.3 in June.

Trading Ideas:
--Aluminium trading range for the day is 140.4-142.6.
--Aluminium prices gained amid weak US dollar and domestic low inventories of primary aluminium.
--Data published Monday showed that profits at China’s industrial firms rose for a second straight month.
--German business sentiment saw a further recovery in July.

Courtesy: Kedia Commodities