Aluminium yesterday traded with the positive node and settled 0.76% up at 112.4 as following the G20 failure to reach an agreement on euro zone aid and the drop of New York crude from a recent high, LME three-month aluminum closed down slightly by USD 3.3/mt or 0.14% at USD 2,318/mt on Monday.
The metal only hit USD 2,339/mt with the help of better than expected US pending home sales data for January.
With a slightly bearish market sentiment, LME three-month aluminum is expected to move between USD 2,280-2,330/mt during today’s trading as it struggles at USD 2,300/mt. Macro economic news was mixed during the day.
German parliament approved a second Greek bailout, and the US released better than expected pending home sales and February Dallas Federal Reserve manufacturing activity. Market sentiment, however, did not improve significantly.
Later, the S&P cut the outlook for EFSF to negative, and lowered Greece’s rating from CC to selective default. Moreover, G-20 meeting is mixed over the way to rescue Greece.
Current market fundamentals are not favorable, and most metals in the LME market overnight closed with limited gains.For today's session market is looking to take support at 111.6, a break below could see a test of 110.8 and where as resistance is now likely to be seen at 113, a move above could see prices testing 113.7.
Trading Ideas:
Aluminium trading range for the day is 110.77-113.67.
Aluminium gained following the G20 failure to reach an agreement on euro zone aid
S&P cut the outlook for EFSF to negative, and lowered Greece’s rating from CC to selective default
Aluminium daily stocks at Shanghai exchange came up by 871 tonnes
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