Aluminum future may uplift on weak inventory data

Commodity reported that aluminum MCX June contract traded with positive node and settled 0.13% up at 113 taking into account negative inventories from past few days and on news that Greece took further steps not to default and to get additional bailout package from European Union and International Monetary Fund.

LME Aluminum prices closed at USD 2,541 per tonnes up by USD 10. LME Aluminum prices should move between USD 2,530 to USD 2,560 due to ongoing Greek debt crisis. Aluminum inventories were down for the third straight day today on LME. The inventories in London metal exchange was down by 12950 tonnes.

Meanwhile, Dollar index also remained on negative side as there was pressure from 2 dominating currency GBP and EURO as well as on the account of the negative expectations of US economical data.

Mr Amrita Mashar analyst said that the market is looking to remain choppy and may conclude at flat to positive. Additionally, as per technical charts Aluminum may find support near 111.60 and then it is expected to move in north direction.

One can buy it around 112.80 to 112.60 with stop loss of 111.60 for the target of 114. However, it should be noted that one should strictly follow stop loss as the market is expected to move with negative bias taking into consideration tension in Euro economy.