29 DECEMBER 2013www.commodityonline.com
Aluminium falls on profit booking, gets support on China buying
Edited by : AL CIRCLE
2 min read
Aluminium settled down -0.88% at 106.50 on profit booking while outlook remain firm on growing confidence about the global economy, year-end covering and the prospect of purchases from China's state reserves. Strong U.S. economic data on Thursday and a bullish growth forecast for China, the world's No. 1 consumer, fuelled hopes about stronger demand for industrial metals.
The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly a month, a hopeful sign for the labor market. Initial claims for state unemployment benefits decreased 42,000 to a seasonally adjusted 338,000, the Labor Department said. Citing an improving labor market, the Federal Reserve last week said it would reduce its monthly $85 billion bond buying program by $10 billion starting in January. China's growth is likely to come in at 7.6 percent this year, just above the government's target of 7.5 percent, according to a cabinet report cited by the official Xinhua news agency. The State Reserves Bureau (SRB) is working on plans to buy about 300,000 tonnes of copper and 100,000 to 150,000 tonnes of nickel in 2014 to take advantage of weak international prices. Investors remain concerned about the potential impact on demand from the country's cash crunch even as constricted supplies have eased.
Technically market is under fresh selling as market has witnessed gain in open interest by 2.65% to settled at 2555 while prices down -0.95 rupee, now Aluminium is getting support at 105.2 and below same could see a test of 103.9 level, And resistance is now likely to be seen at 108, a move above could see prices testing 109.5.
Trading Ideas:
--Aluminium trading range for the day is 103.9-109.5.
--Aluminium ended with losses on profit booking despite of positive US unemployment data and news from Japan BOJ announced minutes from its November policy meeting which indicated that Japan’s GDP grew 1.1% year-on-year during the third quarter.
--Aluminium daily stocks at Shanghai exchange came down by 25 tonnes.
The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly a month, a hopeful sign for the labor market. Initial claims for state unemployment benefits decreased 42,000 to a seasonally adjusted 338,000, the Labor Department said. Citing an improving labor market, the Federal Reserve last week said it would reduce its monthly $85 billion bond buying program by $10 billion starting in January. China's growth is likely to come in at 7.6 percent this year, just above the government's target of 7.5 percent, according to a cabinet report cited by the official Xinhua news agency. The State Reserves Bureau (SRB) is working on plans to buy about 300,000 tonnes of copper and 100,000 to 150,000 tonnes of nickel in 2014 to take advantage of weak international prices. Investors remain concerned about the potential impact on demand from the country's cash crunch even as constricted supplies have eased.
Technically market is under fresh selling as market has witnessed gain in open interest by 2.65% to settled at 2555 while prices down -0.95 rupee, now Aluminium is getting support at 105.2 and below same could see a test of 103.9 level, And resistance is now likely to be seen at 108, a move above could see prices testing 109.5.
Trading Ideas:
--Aluminium trading range for the day is 103.9-109.5.
--Aluminium ended with losses on profit booking despite of positive US unemployment data and news from Japan BOJ announced minutes from its November policy meeting which indicated that Japan’s GDP grew 1.1% year-on-year during the third quarter.
--Aluminium daily stocks at Shanghai exchange came down by 25 tonnes.
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