Aluminium yesterday traded with the negative node and settled -0.95% down at 120.95 as the US Commerce Department announced that new home sales in March rose by 11.1% on a monthly basis to an annual rate of 300,000, better than market expectations. Standard & Poor's cut California's main debt rating to A- and put a negative outlook on its debt rating, causing investors to become cautiously pessimistic. As a result, the US dollar index was mixed and finally closed at 74.098, and NEMEX crude oil prices also fell slightly to USD 111/bbl. LME aluminum prices opened slightly lower at USD 2,735/mt, and are expected to move between USD 2,700-2,750/mt in view of high crude oil prices. In yesterday's trading session aluminium has touched the low of 119.5 after opening at 122.4, and finally settled at 120.95. For today's session market is looking to take support at 119.5, a break below could see a test of 118.1 and where as resistance is now likely to be seen at 122.4, a move above could see prices testing 123.9.

Trading Ideas:

Aluminium trading range is 118.1-123.9.

March daily average aluminium output 69,800 T -IAI

Aluminium is taking resistance at 122.40 and support is seen at 119.50.

Aluminium daily stocks at Shanghai exchange came down by 2835 tonnes.