Commodity Trading Tips for Aluminium by KediaCommodity

Aluminium yesterday traded with the negative node and settled -0.19% down at 106.95 but overall the most in two weeks, paring the first annual decline since 2008, on bets that U.S. growth will buoy metals demand as the economy slows in China. The U.S. expanded at a rate of 1.8 percent this year and will probably increase 2.1 percent in 2012, according to the median of 70 economist estimates compiled by Bloomberg. A private report yesterday showed more Americans than forecast signed contracts to buy previously owned homes in November. If the strength of the housing market is "real and just not another head-fake, we could have a potential game-changer on our hands for the U.S. economy going into 2012," . Italy sold a total of EUR 7.017 billion in 10-year government bonds last Thursday, with yields falling slightly, but still near the alarm level of 7%. A large amount of euro zone debt will mature during 2012, with EUR 150 billion of debt due during Q1 of 2012 and with Italy needing to raise at least EUR 500 billion in capital. In yesterday's trading session aluminium has touched the low of 106.9 after opening at 107.1, and finally settled at 106.95. For today's session market is looking to take support at 106.9, a break below could see a test of 106.8 and where as resistance is now likely to be seen at 107.1, a move above could see prices testing 107.2.

Trading Ideas:

Aluminium trading range is 106.7-107.3.

Aluminium settled down but overall the most in two weeks, paring the first annual decline since 2008

Unwrought aluminium inventories 1.456 mt in Nov vs 1.406 mt in Oct - IAI

Aluminium weekly stocks at Shanghai exchange came up by 16025 tonnes