MCX Aluminium under short covering; Support seen at 142.7
Commodity Online | June 20 2019
UPDATED 10:10:32 IST

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Technically Aluminium market is under short covering as market has witnessed drop in open interest by 4.93% to settled at 1853 while prices up 0.2 rupees.

Now MCX Aluminium is getting support at 142.7 and below same could see a test of 142.2 level, And resistance is now likely to be seen at 143.6, a move above could see prices testing 144.

Aluminium on MCX settled up 0.14% at 143.05 on hopes that renewed talks between China and the United States will defuse a trade dispute that investors fear will damage economic growth and metals demand. Prices was also helped by expectations that the United States and the euro zone may deliver interest rate cuts as early as July.

In a sign of the influence of the U.S.-China trade war, confidence among Asian companies in the June quarter fell to its lowest since the 2008-09 financial crisis. China's central bank said it would sell 30 billion yuan ($4.35 billion) worth of yuan-denominated bills in Hong Kong on June 26, a move expected to support the currency.

In China, industrial output growth slowed to a more than 17-year low of 5% in May, well below expectations, while fixed-asset investment also grew less than expected in Jan-May. Fixed-asset investment rose 5.6% in January-May from the same period a year earlier, the National Bureau of Statistics said, decelerating from 6.1% tipped in the Reuters poll and 6.1% in January-April.

Retail sales rose 8.6% in May from a year earlier, picking up from a 7.2% rise in April, which was a 16-year low. The US Commerce Department said that retail sales rose 0.5% in May, buoyed by strong automobile purchases. Upbeat US manufacturing data also offered some respite to economic growth concerns.

Trading Ideas:
--Aluminium trading range for the day is 142.2-144.
--Aluminium gained on hopes that renewed talks between China and the United States will defuse a trade dispute.
--Prices was also helped by expectations that the United States and the euro zone may deliver interest rate cuts as early as July.
--China's central bank said it would sell 30 billion yuan ($4.35 billion) worth of yuan-denominated bills, a move expected to support the currency.

Courtesy: Kedia Commodities

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