MCX Aluminium may trade between 162.1-168.7 levels
Commodity Online | December 04 2020
UPDATED 10:40:39 IST

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Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 18.36% to settled at 756 while prices down 2 rupees.

Now MCX Aluminium is getting support at 163.5 and below same could see a test of 162.1 levels, and resistance is now likely to be seen at 166.8, a move above could see prices testing 168.7.

Aluminium yesterday settled down by 1.2% at 164.85 on profit booking amid continued spread of the pandemic caused far more damage to the economy than expected.

The dollar fell to its lowest in more than 2-1/2 years, as investor appetite for risk increased on the prospects of further fiscal stimulus from the United States as well as expectations of a solid global recovery.

News of a proposed COVID bill sank the dollar further, as did the resumption of talks between U.S. Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi about a stimulus package. The two have not spoken since before the Nov. 3 U.S. election.

The proposed relief bill was $908 billion and would fund measures through March 31, including $228 billion in additional paycheck protection funds for hotels, restaurants and other small businesses.Speculation is growing that the Federal Reserve will act to support the economy through a tough winter before vaccinations become available.

The Fed meets to set policy on Dec. 15 and 16. Fed Chairman Jerome Powell and Treasury’s Mnuchin also urged Congress to provide more help for small businesses amid a surging coronavirus pandemic and concern that relief from a vaccine may not arrive in time to keep them from failing. Sentiment got a lift after a group of lawmakers unveiled a $908 billion stimulus plan, which includes more than $200 billion in Paycheck Protection Program small business loans.

Trading Ideas:
--Aluminium trading range for the day is 162.1-168.7.
--Aluminium dropped on profit booking amid continued spread of the pandemic caused far more damage to the economy than expected.
--Speculation is growing that the Federal Reserve will act to support the economy through a tough winter before vaccinations become available.
--Sentiment got a lift after a group of lawmakers unveiled a $908 billion stimulus plan, which includes more than $200 billion in Paycheck Protection Program small business loans.

Courtesy: Kedia Commodities

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