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Technically Aluminium market is getting support at 142.7 and below same could see a test of 142.1 level, And resistance is now likely to be seen at 144.4, a move above could see prices testing 145.5.
Aluminium on MCX settled down 0.59% at 143.35 as price has come under increased pressure over the latter half of the month, prompted by deliveries of over 156,000 tonnes in mid-October while market hysteria surrounding US sanctions against Rusal have dissipated.
Also fresh concerns that a U.S.-China trade war was dampening global growth, while lead touched a two-week low after inventories shot up. Speculators kept up selling pressure after U.S. President Donald Trump warned he had billions of dollars of new tariffs ready to go if a trade deal with China isn’t possible.
Comments overnight added further fuel to the fire in terms of the risk of further escalation and downside risk to Chinese growth. Last night the US dollar index rose to the highest thus far this year on Tuesday, amid growing signs the US economy is outperforming its peers.
Most LME and SHFE base metals ended in negative territory overnight with LME zinc being the biggest loser, down some 2.5% on the day. LME copper dropped 1.66%, lead fell close to 0.9%, aluminium slid some 0.7% and tin dipped 0.05% while nickel inched up 0.21%.
Meanwhile the China Securities Regulatory Commission on Tuesday said that it would improve market liquidity and encourage more long-term capital into the market.
Now a day ahead Economic data slated for release today also include Germany’s September retail sales, the eurozone’s September unemployment rate and October consumer inflation, the US ADP employment numbers and Chicago PMI for October as well as EIA weekly crude inventory data.
Trading Ideas:
–Aluminium trading range for the day is 142.1-145.5.
–Aluminium dropped on fresh concerns that a U.S.-China trade war was dampening global growth.
–Selling pressure intensified after U.S. President Donald Trump warned he had billions of dollars of new tariffs ready to go if a trade deal with China was not possible.
–The world’s biggest mining company BHP Billiton trimmed its expectations of global growth for next year and 2020, citing the U.S.-China trade conflict.
Courtesy: Kedia Commodities
Source: Commodityonline.com
