Aluminium yesterday traded with the positive node and settled 0.32% up at 110.15 traded in the range as markets were closed overnight in countries including the US, Germany and France due to holidays, leading to light trading. The US dollar index was pressured during early European trading, helping LME aluminum test pressure at the 10-day moving average. The light metal failed to present any effective breakthrough, only hitting USD 2,028/mt, before closing up USD 13/mt or 0.65% at USD 2,027/mt. Though more investors now expect Greece to stay in the euro zone, risk aversion will stay due to surging debt yields and bank downgrades in Spain. The easing of market concerns, the absorption of negative news and technical rebounds helped support LME nickel prices. Since market worries focus on the Greek debt issues, debt problems in Spain and Italy have been neglected. The issues in the two countries will continue to deteriorate before the resolution of Greek debt issues. This will negatively affect LME price movements. In yesterday's trading session aluminium has touched the low of 109.35 after opening at
109.4, and finally settled at 110.15. For today's session market is looking to take support at 109.6, a break below could see a test of 109 and where as resistance is now likely to be seen at 110.5, a move above could see prices testing 110.9.

Trading Ideas:

Aluminium trading range for the day is 108.98-110.88.

Aluminium prices ended with gains tracking LME prices as metal failed to present any effective breakthrough

Investors now expect Greece to stay in euro zone, risk aversion will stay due to surging debt yields and bank downgrades in Spain.

Aluminium daily stocks at Shanghai exchange came down by 3198 tonnes