Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 23.05% to settled at 3406 while prices down 5.3 rupees.
Now MCX Aluminium is getting support at 202.1 and below same could see a test of 199.4 levels, and resistance is now likely to be seen at 209.5, a move above could see prices testing 214.2.
Aluminium yesterday settled down by 2.52% at 204.75 amid a strong US dollar and weaker demand in China amid a sluggish real estate market.
New home prices in China fell for a second consecutive month in October and sales and property investments also declined. Meanwhile, Japan and the US agreed to start discussions on removing additional tariffs on Japanese steel and aluminum imports.
The US already agreed to remove tariffs on certain quantities of steel and aluminum from the European Union, imposed by President Trump in 2018. The market was still concerned about aluminium consumption amid weakening real estate-related futures prices.
The supply side saw no significant changes recently, while the demand side lacked resilience. U.S. import prices surged in October as the costs of petroleum products and food increased, adding to signs that inflation could remain high for a while.
Import prices accelerated 1.2% last month after gaining 0.4% in September, the Labor Department said. In the 12 months through October, prices jumped 10.7% after rising 9.3% in September.
U.S. retail sales increased more than expected in October, likely as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods because of the ongoing pandemic, giving the economy a lift at the start of the fourth quarter.
Trading Ideas:
–Aluminium trading range for the day is 199.4-214.2.
–Aluminum prices dropped amid a strong US dollar and weaker demand in China amid a sluggish real estate market.
–New home prices in China fell for a second consecutive month in October and sales and property investments also declined.
–Japan and the US agreed to start discussions on removing additional tariffs on Japanese steel and aluminum imports.
Courtesy: Kedia Commodities
Source: Comodity Online
