MCX Aluminium under long liquidation; Support seen at 144.1
Commodity Online | March 22 2019
UPDATED 10:10:34 IST

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Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 11.19% to settled at 873 while prices down 2.05 rupees.

Now MCX Aluminium is getting support at 144.1 and below same could see a test of 143.3 level, And resistance is now likely to be seen at 146.2, a move above could see prices testing 147.5.

Aluminium on MCX settled down 1.4% at 144.9on profit booking after prices gained amid decline of some 20,000 mt in social inventories of primary aluminium in China. There were also report that Rio Tinto suspended operations at its bauxite mine in north Australia due to a cyclone.

Norsk Hydro reported some progress in restoring operations after it was hit by a cyber attack. China produced some 2.97 million mt of primary aluminium in January, down 0.5% from January 2018, and down 0.7% from December. By the end of January, domestic primary aluminium capacity under operation stood at an annualised 34.96 million mt, down 270,000 mt/year from December.

Despite new capacity in Inner Mongolia’s Chuangyuan and Guyang smelters, capacity cuts at Shaanxi Hengkang, Shandong Huayu, Shanxi Huasheng, and Shanxi Huaze continued to lower operating capacity last month. Having downgraded the U.S. growth, unemployment and inflation forecasts, the Fed brought its three-year drive to tighten monetary policy to an abrupt end, abandoning projections for any interest rate hikes this year.

The dollar fell sharply and U.S. Treasuries rallied after Fed’s decision on Wednesday, taking the benchmark 10-year yield to a 14-month low. UK Prime Minister Theresa May made an appeal to British lawmakers to support her after the European Union said it could only grant her request to delay Brexit for three months if parliament next week backed her plans for leaving.

Trading Ideas:
--Aluminium trading range for the day is 143.3-147.5.
--Aluminium dropped on profit booking after prices gained amid decline of some 20,000 mt in social inventories of primary aluminium in China.
--There were also report that Rio Tinto suspended operations at its bauxite mine in north Australia due to a cyclone.
--China produced some 2.97 million mt of primary aluminium in January, down 0.5% from January 2018, and down 0.7% from December.

Courtesy: Kedia Commodities

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