Aluminium yesterday settled up 2.05% at 107.20 as macroeconomic news released overnight was mostly positive. European and US manufacturing indices topped expectations, boosting European and US stocks to close the day with gains. Economic data from Europe and US overnight was positive and pushed up stocks and commodity prices. US June ISM manufacturing PMI was 50.9, higher than 49 in the previous month and the expected 50.5. Boosted by the recovering property market, US construction spending increased by 0.5%, to USD 874.9 billion in May, a record high in four years. June PMIs in all euro zone countries rose except for Germany, with the final euro zone PMI recording 48.8, a record high in 16 months. PMIs in Italy, Spain and Greece also climbed to a 2-year high. In this context, stocks markets and commodity prices were drove up by strong long momentum. LME aluminum was stagnant at $1,785/mt during early hours of the European session as inventories hit a new record high of 5.45 million mt, but later touched a high of $1,826/mt as upbeat US economic figures forced shorts to exit the market. Finally, LME aluminum closed up $49/mt or 2.76% at $1,824/mt. LME aluminum inventories added 14,575 mt to 5,450,175 mt, but positions were off 5,965 lots to 750,803 lots. Aluminum prices will extend gains today on positive US manufacturing PMI. Technically market is under short covering as market has witnessed drop in open interest by -0.97% to settled at 3981 while prices up 2.15 rupee, now Aluminium is getting support at 105.30 and below same could see a test of 103.50 level, And resistance is now likely to be seen at 108.10, a move above could see prices testing
109.10.

Trading Ideas:

Aluminium trading range for the day is 103.6-109.2.

Aluminium yesterday settled up 2.05% as macroeconomic news released overnight was mostly positive.

Boosted by the recovering property market, US construction spending increased by 0.5%, to USD 874.9 billion in May, a record high in four years.

Technically market is under short covering as market has witnessed drop in open interest by -0.97% to settled at 3981