MCX Aluminium likely to move in a range of 129.5-132.7

Technically MCX Aluminium is getting support at 130.1 and below same could see a test of 129.5 level, And resistance is now likely to be seen at 131.7, a move above could see prices testing 132.7.

Aluminium on MCX settled down 0.27% at 130.80 on long liquidation tracking weakness Shanghai aluminium prices moved lower after Malaysia said it would not extend a moratorium on mining bauxite, potentially reducing costs in the aluminium supply chain for top producer China.

Bauxite is a rock refined to make alumina, which is then used to make aluminium metal. The most traded April aluminium contract on the Shanghai Futures Exchange slipped 0.4% to 13,395 yuan (US$1,977) a tonne, just above the two-year low of 13,230 yuan struck last month.

Three-month aluminium on the LME was down 0.1% at US$1,855 a tonne. The Malaysian government said it would not extend its moratorium on bauxite mining which ends on March 31 due to strong demand for the industry, state news agency Bernama reported on Monday, quoting the water, land and natural resources minister.

Mining giant Glencore has bought 200,000 tonnes of aluminium on the LME and will take delivery of the metal from warehouses owned by ISTIM UK in Port Klang, Malaysia, five sources familiar with the matter said.

Last night LME base metals traded mixed on Monday. The US dollar index, which measures the dollar against a basket of rivals, slipped on Monday as optimism over a breakthrough in US-China trade talks drove investors to the euro and riskier currencies.

Now a day ahead Economic data slated for release today include the February ZEW economic sentiment for the eurozone and Germany as well as weekly US crude stocks report from the American Petroleum Institute (API).

Trading Ideas:
–Aluminium trading range for the day is 129.5-132.7.
–Aluminium traded in range as the United States and China will resume trade talks in Washington.
–But U.S. President Donald Trump repeated that he may extend a March 1 deadline for a deal 

–Stocks came in at 1.65 million mt as of Monday Feb 18, up 33,000 mt from Thursday Feb 14.

Courtesy: Kedia Commodities