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New York
Friday, March 24, 2023

MCX Aluminium may trade between 131.6-134.6 levels

Technically MCX Aluminium market is getting support at 132.5 and below same could see a test of 131.6 level, And resistance is now likely to be seen at 134, a move above could see prices testing 134.6.

Aluminium on MCX settled down 0.22% at 133.40 dropped on fresh selling while LME Aluminium prices closed unchanged at $1,880 a tonne as speculators sold in response to concerns about U.S.-China trade talks and global growth.

China expressed anger on Monday at a U.S. Navy mission through the disputed South China Sea after U.S. President Donald Trump said last week that he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline for a trade deal.

Chinese investors, returning after a week-long national holiday, seemed to focus more on downbeat news rather than optimism expressed by China on Monday about a new round of trade talks with the United States.

Another factor clearly weighing on sentiment is fairly weak premiums. European premiums have edged lower for several months now –  US tariffs are not helping regional premiums elsewhere, whilst the threat of Rusal material is also weighing on premiums.

Weaker premiums have not been supportive for the market, with this doing little to stop the inflow of material into LME warehouses.

Last night base metals traded lower Zinc and lead dropped more than 2%, copper fell 0.77%, nickel slipped 1.06% and aluminium closed flat down by -0.22 as the US dollar index rose above 97 on Monday as an economic slowdown in Europe, weak emerging markets and the strong US job market drove investors to the safe-haven currency.

On the central bank front, Fed Chairman Jerome Powell, Fed governor Michelle Bowman, BoE Governor Mark Carney and Bundesbank President Jens Weidmann will deliver speeches.

Trading Ideas:
–Aluminium trading range for the day is 131.6-134.6.
–Aluminium dropped on concerns over U.S.-China trade dispute and slowing global economic growth.
–Investors are looking ahead to trade talks between Beijing and Washington this week with a delegation of U.S. officials travelling to China for the next round of negotiations.
–U.S. President Donald Trump said last week that he had no plans to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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