MCX Aluminium likely to move in a range of 128.9-131.9

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Technically MCX Aluminium is getting support at 129.6 and below same could see a test of 128.9 level, And resistance is now likely to be seen at 131.1, a move above could see prices testing 131.9.

Aluminium on MCX settled down 0.19% at 130.10 on long liquidataion after the news that Norwegian aluminium-maker Norsk Hydro aims to resume full production at its Alunorte alumina plant in Brazil within weeks or months, although the process still remains uncertain, Chief Executive Svein Richard Brandtzaeg told Reuters.

While LME Aluminium ended up 0.5 per cent at $1,861 as a weaker dollar enabled the metal to hold gains made from optimism over U.S.-China trade talks. A weaker greenback makes dollar-denominated metals cheaper for holders of other currencies and can support prices.

However, prices in top consumer China, which reported more disappointing factory data on Thursday, failed to sustain the momentum. Also yesterday China’s commerce ministry said trade talks with the United States this week were extensive and detailed, and established a foundation for the resolution of each others’ concerns.

This would normally have been enough to encourage metals buyers but the news was rather offset by the Chinese and CPI numbers falling short of forecasts.

Last night the US dollar rebounded from three-month lows, extending gains against the euro and yen, after Federal Reserve Chairman Jerome Powell said that the US central bank intends to further shrink the balance sheet, suggesting is not done tightening monetary policy.

The Fed chairman also said he sees no near-term risk of a US recession and expects continued momentum in data. However, he reiterated that the Fed can be patient on monetary policy and can move “flexibly and quickly” if data warrants it.

Trading Ideas:
–Aluminium trading range for the day is 128.9-131.9.
–Aluminium prices little changed as the metal sought to cling on to gains made from optimism over the latest round of U.S.-China trade talks in Beijing.
–Norwegian aluminium-maker Norsk Hydro aims to resume full production at its Alunorte alumina plant in Brazil within weeks or months
–China’s commerce ministry said trade talks with the United States this week were extensive and detailed, and established a foundation for the resolution of each other’s concerns.

Courtesy: Kedia Commodities              

Source: Commodityonline.com