Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 1 January 2013

Aluminium yesterday traded with the positive node and settled 0.35% up at 113.10 generally fluctuated narrowly, both the November existing home sales in the US and December Chicago manufacturing PMI released last Friday beat forecasts, but market focus was on the fiscal cliff talks restarted on December 30. The US dollar index staged a strong rebound and approached 80 as investors tried to avoid risks, weighing down commodity prices. Meanwhile, market players remained focused on developments surrounding the fiscal cliff in the US, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1 unless Democrats and Republicans agree how to cut the deficit. US President Barack Obama met with congressional leaders at the White House Friday afternoon, but both sides failed to reach an agreement ahead of the looming year-end deadline. The gathering included House Speaker John Boehner and Senate Minority Leader Mitch McConnell, both Republicans, as well as Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi, both Democrats. In yesterday's trading session aluminium has touched the low of 112.65 after opening at 112.8, and finally settled at 112.7. In yesterday's trading session aluminium has touched the low of 112.5 after opening at 112.85, and finally settled at 113.1. For today's session market is looking to take support at 112.5, a break below could see a test of 111.9 and where as resistance is now likely to be seen at 113.7, a move above could see prices testing 114.3.