Technically Aluminium market is under short covering as market has witnessed drop in open interest by 6.52% to settled at 2049 while prices up 2 rupees.
Now MCX Aluminium is getting support at 210.5 and below same could see a test of 208.4 levels, and resistance is now likely to be seen at 213.9, a move above could see prices testing 215.2.
Aluminium yesterday settled up by 0.95% at 212.4 as the social inventory continued to drop, supporting aluminium prices.
The aluminium output stood low as there is minimal increase in supplies. China’s exports rose 22% in November from the same period a year before and imports jumped 31.7%, customs data showed.
Imports were forecast to have risen 19.8%, according to the poll, versus a 20.6% gain in October. China posted a trade surplus of $71.72 billion last month, compared with the poll’s forecast for a $82.75 billion surplus.
China reported a $84.54 billion surplus in October.China’s foreign exchange reserves unexpectedly rose in November, official data showed, even as the dollar posted a gain against a basket of major currencies.
The country’s foreign exchange reserves the world’s largest rose by $4.77 billion to $3.222 trillion last month, compared with $3.212 trillion forecast and $3.218 trillion in October. The value of China’s gold reserves rose to $113.03 billion at the end of November from $110.83 billion at end-Oct.
Concerns over a possible default of cash-strapped China Evergrande Group resurfaced after the property developer failed to make coupon payments to some offshore bondholders by the end of a 30-day grace period.
Trading Ideas:
–Aluminium trading range for the day is 208.4-215.2.
–Aluminium gains as the social inventory continued to drop, supporting aluminium prices.
–China’s Nov forex reserves unexpectedly rise to $3.222 trln.
–Chinese govt thinktank proposes growth target of above 5% for 2022.
Courtesy: Kedia Commodities
Source: Comodity Online
