Aluminium yesterday traded with the positive node and settled 1.07% up at 107.9 on short covering seen in the all basemetal counter while debt problems in peripheral eurozone nations continued to sap investor confidence in base metals and other risky assets. Traders have barely caught their breath after a ruthless Sept sell-off that saw double-digit losses across many base metals. But Oct started with more of the same - aluminium hit an intraday low of 105.10 earlier in the session, while the rest of the complex also struggled. Overall the market is caught in the berish trapped as base metals apart from aluminium are down more than 20% in the ytd, as global economic worries have gradually mushroomed into a panic. Greece is teetering on the edge of a default and there are signs that Western economies may be headed back into recession. Sentiment worsened on Monday on fears that Greece will miss a deficit target set in July as part of a massive bailout package, according to draft budget figures released over the weekend, raising the likelihood of a default.  Its deficit this year is likely be 8.5% of GDP, above the 7.6% target agreed with a "troika" of lenders - the EU, the ECB and the IMF. For today's session market is looking to take support at 105.9, a break below could see a test of 103.8 and where as resistance is now likely to be seen at 109.2, a move above could see prices testing 110.5.

Trading Ideas:

Aluminium trading range is 103.8-110.5.

Aluminium prices gained due to potential supply cutbacks

LME aluminium touches new one-year low on stronger dollar, growing uncertainty

Sentiment worsened on fears that Greece will miss deficit target set in July as part of massive bailout package