MCX Aluminium may trade between 140.5-145.7 levels
Commodity Online | July 22 2019
UPDATED 10:10:32 IST

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Technically MCX Aluminium is getting support at 141.8 and below same could see a test of 140.5 level, and resistance is now likely to be seen at 144.4, a move above could see prices testing 145.7.

Aluminium on MCX settled down 0.49% at 143 as market witnessed long liquidation after prices gained as upbeat economic data from China spurred market confidence.  Lower costs and weaker consumption will take a toll, while an anticipated recovery at the end of the third quarter offers support.

Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, barely changed from a week ago and stood at 1.042 million mt as of Thursday July 18, showed data. This came after the first weekly increase in about four months in the week ended July 11.

Inventories of aluminium billet in China continued to shrink, with a significant drop in stocks in Foshan of Guangdong province.Data showed that stocks of 6063 aluminium billet across five major consumption areas decreased by some 400 mt from Thursday July 11 to stand at 81,100 mt as of Thursday July 18, after they fell 1,700 mt in the previous week.At a central banking conference, New York Fed President John Williams argued for pre-emptive measures to avoid having to deal with too-low inflation and interest rates.

That sent the dollar down before it rebounded slightly after a New York Fed representative subsequently said Williams’ comments were academic and not about immediate policy direction.Investors took Williams’ remarks along with separate comments from Fed Vice Chair Richard Clarida as another dovish signal from the central bank, which could be opening the way for a big rate cut at the end of this month.

Trading Ideas:
--Aluminium trading range for the day is 140.5-145.7.
--Aluminium sropped as market witnessed long liquidation after prices gained as upbeat economic data from China spurred market confidence.
--Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, barely changed from a week ago.
--Inventories of aluminium billet in China continued to shrink, with a significant drop in stocks in Foshan of Guangdong province.

Courtesy: Kedia Commodities

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