MCX Aluminium may trade between 139.5-142.5 levels

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Technically MCX Aluminium is getting support at 140.3 and below same could see a test of 139.5 , and resistance is now likely to be seen at 141.8, a move above could see prices testing 142.5.

Aluminium on MCX settled up 0.07% at 140.95 on a weaker US dollar as disappointing US manufacturing data and trade deficits grew market expectations of further interest rate cuts by the .’s nonmanufacturing activities expanded at the fastest pace in three months, which eased worries about slower demand.

Activity in China’s services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in over a year, a Caixin survey showed. The Jiangxi-based aluminium extrusion producer, Kaimeida, will deploy a plant that can produce a maximum of 50,000 of aluminium alloy profiles a year in southwest China’s Guizhou province.

The signing ceremony for the project was held on August 30 between the company and the government of Guiding county.Social inventories of primary aluminium in China fell this week for a second straight week, as most regions saw greater deliveries. Data showed that stocks across eight consumption areas in China, including SHFE warrants, decreased by 27,000 mt from a week ago to stand at 1.006 million mt as of Thursday September 5.

Inventories of aluminium billet in China rose for the second consecutive week as of Thursday September 5 on greater arrivals in Guangdong.  Data showed that stocks of 6063 aluminium billet across five major consumption areas increased some 13,700 mt from Thursday August 29 to stand at 105,400 mt as of Thursday September 5, after they expanded 400 mt in the previous week.

Trading Ideas:
–Aluminium trading range for the day is 139.5-142.5.
–Aluminium prices gained on a weaker US dollar as disappointing US manufacturing data and trade deficits.
–Social inventories of primary aluminium in China fell this week for a second straight week, as most regions saw greater deliveries.
–Data showed that stocks across eight consumption areas in China, decreased by 27,000 mt from a week ago to stand at 1.006 million mt.

Courtesy: Kedia Commodities

Source: Commodityonline.com