Commodity Trading Tips for Aluminium by KediaCommodity

Aluminium yesterday traded with the negative node and settled -0.05% down at 108.25 as the US dollar index stood steady at 81 last Friday as worries towards European debts outweighed support from strong non-farm payroll data of the US. LME aluminum, however, gained supported by profit-taking at the tail of trading, closing USD 24.5/mt or 1.2% higher at USD 2,063.5/mt. Though the metal showed more stability than other base metals, contracting transactions indicate inadequate upward momentum. Asian investors are pulling out of markets as the Chinese New Year nears. LME aluminum look to test support at the 30-day moving average and move between USD 2,030-2,070/mt during today’s trading. Since most aluminum processors end production early ahead of the Chinese New Year, sufficient supply will keep spot aluminum prices at discounts of RMB 30/mt to premiums of RMB 10/mt over the SHFE current-month aluminum price. In yesterday's trading session aluminium has touched the low of 108.1 after opening at 108.2, and finally settled at 108.25. For today's session market is looking to take support at 108.1, a break below could see a test of 108 and where as resistance is now likely to be seen at 108.3, a move above could see prices testing 108.4.

Trading Ideas:

Aluminium trading range is 108-108.4.

Aluminium yesterday traded with the negative node as the US dollar index stood steady at 81 last Friday

The metal showed more stability than other base metals, contracting transactions indicate inadequate upward momentum

Aluminium weekly stocks at Shanghai exchange came up by 1577 tonnes