Aluminium yesterday traded with the positive node and settled 1.78% up at 117.95 recovered after China's central bank announced on Thursday that it will raise the reserve requirement ratio (RRR) of the country's lenders by 50 basis points, the fifth such increase in 2011. The raise will become effective on May 18th, and this move will lift the RRR for China's large financial institutions to a record high of 21%, a signal of China’s strong determination of combating inflation, but investors have already expected such move, so the RRR hike failed to exert great effect on European markets. Later, the US released a series of economic data, and both producer price index (PPI) for April and the initial claims for jobless benefits last week were better than market expectations, helping boost the US stocks, and the US dollar index fell back in response, with the index finally closing at 75.254. For today's session market is looking to take support at 115.9, a break below could see a test of 113.9 and where as resistance is now likely to be seen at 119, a move above could see prices testing 120.1.

Trading Ideas:

Aluminium trading range is 113.9-120.1.

China aluminium output seen fresh record in May after April high

Aluminium is taking resistance at 119 and support is seen at 115.90.

Aluminium daily stocks at Shanghai exchange came down by 1864 tonnes.