Commodity Trading Tips for Aluminium by KediaCommodity

AluminiumAluminium yesterday traded with the positive node and settled 2.57% up at 108.8 tracking LME aluminum which broke through the 5-day moving average and closed up USD 58.3/mt or 2.66% at USD 2,250.3/mt, supported by the second Greek bailout. Confidence boost from the latest Greek debt deal stays as Euro zone finance ministers sealed a deal on February 21 for a second bailout for Greece, and the EU will provide EUR 130 billion bailout for Greece, while private creditors will have to accept a haircut of 53.5% of the nominal value of Greek bonds they hold. The passing of the second bailout for Greece helped ease market concerns and boosted base metal prices. Consequently, commodity markets closed with gains, including energy markets, precious metal markets along with improved market sentiment. US equities exhibited strong performance during the first trading day following a public holiday, with the Dow Jones Industrial Average crossing the 13,000 level for the first time since May 2008. For today's session market is looking to take support at 106.7, a break below could see a test of 104.6 and where as resistance is now likely to be seen at 109.9, a move above could see prices testing 111.

Trading Ideas:

Aluminium trading range for the day is 104.6-111.

Aluminium prices gained supported by the second Greek bailout.

The passing of the second bailout for Greece helped ease market concerns and boosted base metal prices.

Aluminium daily stocks at Shanghai exchange came down by 1320 tonnes