MCX Aluminium may trade between 145.3-148.1 levels
Commodity Online | August 07 2020
UPDATED 10:40:37 IST

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Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 5.31% to settled at 595 while prices up 1.2 rupees.

Now MCX Aluminium is getting support at 146.1 and below same could see a test of 145.3 levels, and resistance is now likely to be seen at 147.5, a move above could see prices testing 148.1.

Aluminium yesterday settled up by 0.82% at 146.9 amid expectations of stronger economic growth and demand due to central bank and government stimulus. The US dollar weakened as the White House was in a stalemate with Democrats over a coronavirus relief deal.

The White House threatened to act on its own to provide coronavirus relief Wednesday after another day of talks with Democrats yielded no agreement.

Though the Trump administration apparently yielded ground in bargaining over extended unemployment insurance, a range of issues remained unresolved Wednesday after officials’ latest meeting with Democratic leaders.

Leaving a roughly two-hour huddle with House Speaker Nancy Pelosi, Senate Minority Leader Chuck Schumer and Treasury Secretary Steven Mnuchin, White House chief of staff Mark Meadows told reporters the sides had “no agreement.”China’s primary aluminium output rose 2.42% year on year to 3 million mt in June (30 days), showed a 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, while operating rates across Chinese primary aluminium producers inched up 0.3 percentage point to 89% as high margins encouraged newly commissioned and resumed capacities to ramp up.

Trading Ideas:
--Aluminium trading range for the day is 145.3-148.1.
--Aluminium gained amid expectations of stronger economic growth and demand due to central bank and government stimulus.
--The US dollar weakened as the White House was in a stalemate with Democrats over a coronavirus relief deal.
--China’s primary aluminium output rose 2.42% year on year to 3 million mt in June.

Courtesy: Kedia Commodities