Aluminium yesterday traded with the negative node and settled -2.98% down at 110.90 most in the group, despite of news that China will probable expand investment in Chinese market by foreign companies, which had helped the Shanghai Composite Index jump to 2,300 points yesterday. But market was traded under pressure as still worried about the deadlocked debt ceiling issues in the US and that modified QE3 may end early. In this context, longs closed positions, driving LME aluminum down to $ 2,051.5/mt. Meanwhile Bernanke's speech failed to yield any good results and can not lift commodity markets, while Obama explicitly rejected to negotiate the debt ceiling issue. While Aluminium market forecast has been reduced in the medium-long term to reflect the combination of high stocks, continued surplus and ongoing expansion of smelting capacity in Western China which provides a strong offset to cost inflation of the overall industry. However, with access to stocks set to remain limited, market believe aluminium premiums will remain high and also see 2013 upside. In yesterday's trading session aluminium has touched the low of 110.75 after opening at 114.35, and finally settled at 110.9. For today's session market is looking to take support at 109.6, a break below could see a test of 108.3 and where as resistance is now likely to be seen at 113.3, a move above could see prices testing 115.7.

Trading Ideas:

Aluminium trading range for the day is 108.33-115.73.

Aluminium ended lower as market is still worried about the deadlocked debt ceiling issues in the US

Bernanke's speech failed to yield any good results and can not lift commodity markets

According to data from Eurostat, industrial output for November fell 0.3% MoM, lower than an increase by 0.2% expected