Commodity Trading Tips for Aluminium by Kedia Commodity

Aluminium on MCX settled up 1.63% at 121.50 gained tracking firmness from LME Aluminium closed up 1.80 percent at $1,790 as support seen after China's National Development and Reform Commission said it had approved 23 fixed-asset investment projects worth 184.0 billion yuan ($26.53 billion) in December. While earlier in the session prices dropped after U.S. President-elect Donald Trump failed to offer concrete stimulus plans, while the London Metal Exchange electronic trading platforms did not open. In the other news the Obama administration on Thursday (Jan 12) filed a trade complaint against China for using "artificially cheap" loans and raw materials to boost its aluminium industry at the expense of US competitors. The actions were tantamount to providing subsidies that violate World Trade Organization rules, and caused "serious prejudice" to US aluminum companies, the US Trade Representative said. They also flooded the world market with excess supply of the metal, driving down prices. In the week ahead, investors will be looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December. Technically market is under fresh buying as market has witnessed gain in open interest by 13.3% to settled at 2479 while prices up 1.95 rupee, now Aluminium is getting support at 119.7 and below same could see a test of 117.9 level, And resistance is now likely to be seen at 122.6, a move above could see prices testing 123.7.

Trading Ideas:

Aluminium trading range for the day is 117.9-123.7.

Aluminium gained tracking firmness from LME Aluminium seen after China's NDRC said it had approved 23 fixed-asset investment projects.

Support also seen as dollar weakened on US president-elect Donald Trump's failure to give clear policy details

Manufacturing indicators still look good, which could suggest that the global economy has got off to a good start in 2017