Aluminium yesterday traded with the negative node and settled -0.39% down at 115.1 but overall since last 2-3 session market activity was dull and yesterday as there was no significant economic data was released market traded in the tight range.
The Federal Reserve chairman Ben Bernake attended and addressed at House of Representative hearing and he stated that the US will continue to maintain loose monetary policy by virtue of high unemployment rate and low inflationary pressure.
The US dollar was weighed to open at 77.99, and closed at 77.66, down by 0.43%. Although the US dollar is weak, concerns over tight monetary policy from China as well as LME copper price's slip below USD 10,000/mt weighed on LME aluminum prices.
In yesterday's trading session aluminium has touched the low of 114.85 after opening at 115.4, and finally settled at 115.1.
For today's session market is looking to take support at 114.4, a break below could see a test of 113.8 and where as resistance is now likely to be seen at 116.2, a move above could see prices testing 117.3.
Trading Ideas:
Aluminium trading range is 113.8-117.3.
Aluminium ended in red territory and trading in a range from last 2-3 days
Aluminium is taking support at 114 and resistance at 116.20 level.
Aluminium daily stocks at Shanghai exchange came down by 124 tonnes.
