Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 13.28% to settled at 3363 while prices down 1 rupees.
Now MCX Aluminium is getting support at 140.5 and below same could see a test of 139.8 level, and resistance is now likely to be seen at 142.2, a move above could see prices testing 143.2.
Aluminium on MCX settled down 0.7% at 141.05 as pressure seen after the update that Indonesian state-owned smelting company PT Indonesia Asahan Aluminium will raise its annual smelter capacity to a million tonnes in the next six to seven years from 250,000 tonnes now, its managing director said.
Also sentiments remain weak amid growing concerns over the Wuhan virus outbreak and its potential economic impact. Meanwhile, aluminium inventories continue to flow outwards, declining by 18.6kt yesterday (largest since May'19) to 1.31m tonnes. On the trade front, US President Donald Trump told CNBC on Wednesday that the European Union has “no choice” but to agree to a new trade deal.
In a meeting with European Commission President Ursula von der Leyen in Davos on Tuesday, Trump again threatened to levy tariffs on European car imports in the absence of renewed trade commitments from the bloc. Today traders will be eyeing on the European Central Bank’s first policy meeting of the year should be closely watched today.
--Aluminium trading range for the day is 139.8-143.2.
--Aluminium drop as Indonesia Asahan Aluminium will raise its annual smelter capacity.
--Sentiments remain weak amid growing concerns over the Wuhan virus outbreak.
--Concerns there after Donald Trump said that the EU has “no choice” but to agree to a new trade deal.
Courtesy: Kedia Commodities