KediaCommodity offers Trading Tips for Aluminium

Aluminium yesterday traded with the positive node and settled 0.18% up at 108.45 but earlier in the data we have seen market falling to day's low of 106.60 as United States April factory orders unexpectedly and sharply fell. The debt crisis has been developing in several European countries. As the market has somewhat digested that recently, the US dollar index retreated. Short-selling should weaken today and aluminum will be range-bound. LME is still closed today. Insufficient downstream activities have weakened market buying, and goods holders’ selling interests are still strong. Meanwhile support seen as Aluminum buyers in Japan, Asia’s largest importer, agreed to pay a record premium to producers next quarter after global smelters cut output, according to five officials with direct knowledge of the talks. Premiums for the three months starting in July will be $200 to $210 a metric ton over the London Metal Exchange’s price of metal for immediate delivery, compared with $115 to $127 this quarter, said the executives, referring to transactions agreed so far. They declined to be identified because the fee hasn’t been publicly announced. In yesterday's trading session aluminium has touched the low of 106.6 after opening at 108.45, and finally settled at 108.45. For today's session market is looking to take support at 107.1, a break below could see a test of 105.8 and where as resistance is now likely to be seen at 109.2, a move above could see prices testing 110.

Trading Ideas:

Aluminium trading range for the day is 105.82-110.02.

Aluminium recovered as Portugal’s FMannounced that the country's EUR78 billion bailout program.

Japan agreed to pay a record premium to producers next quarter after global smelters cut output.

UK secondary aluminium ingot prices remained flat as producers prepared to shut production for maintenance work next week.