KediaCommodity offers Trading Tips for Aluminium

Aluminium yesterday traded with the positive node and settled 0.1% up at 103.55 as rebound in euro and the far-better-than-expected GDP in 2Q in the US supported the prices. It was reported euro zone countries and European central bank plan to intervene the financial market to help lower loan costs of Spain and Italy. German Chancellor Angela Merkel and French President Hollande stated they will protect the euro zone as possible as they can. Besides, US Commerce Department announced US GDP during 2Q was 1.5%, compared to the 1% estimated, while the increase during 1Q was 2.0%. That indicated that both US consumer and government spending during 2Q fell, and US economic growth is in the face of downturn risk. United States Geological Survey (USGS) report has said that US primary Aluminium production was 179000 tonnes in the month of May 2012. The average daily production of Aluminium in US was 5780 tonnes that was 6% higher than May 2011. Total aluminum recovered from scrap in May 2012 was 298000 tonnes, 5% more than the amount recovered in the previous month and 15% more than the amount recovered in May 2011. In yesterday's trading session aluminium has touched the low of 103.45 after opening at 103.5, and finally settled at 103.55. For today's session market is looking to take support at 103.5, a break below could see a test of 103.4 and where as resistance is now likely to be seen at 103.6, a move above could see prices testing 103.6.

Trading Ideas:

Aluminium trading range for the day is 103.42-103.62.

Aluminium gains as rebound in euro and the far-better-than-expected GDP in 2Q in the US supported the prices.

USGS report has said that US primary Aluminium production was 179000 tonnes in the month of May 2012.

Germany and France pledged to protect the euro, raising expectations for more stimulus policies from the ECB.