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Aluminum gets a timely technical lift
8/3/2010AHMEDABAD (Commodity Online): Aluminum opened positive at the London Metals Exchange on a stronger Euro. Although yesterday, towards the course of the day the metals were expected to trade higher, a disappointing manufacturing data put pressure on the prices.
Aluminum price is supported by CPI data and industry demand. Accordingly price rose to 10 week high at MCX counter in month of July. Industrial demand also pushed price to move ahead with technical revival from bottom levels.
On Monday evening, Aluminum August contract was trading around 8 percent high from last week low of 94.50 and this week price reached to record high level of last few weeks; made high of 102.60 rupees per kg.
On 3rd August, MCX aluminum future for August opened at 102.05. Price is currently trading at Rs 102.30 per kg, up by 0.15 percent per kg at 1:30PM. Resistances for the contract are at Rs 103.10 and strong support seen at 101.50. LME stockpiles are also supporting to bust price upside, according to Amrita Mashar, Analyst with Commodity Online.
In July month, Aluminum 3 month’s delivery contract on London metal exchange which advanced 10 percent. LME stockpile shrank since seven trading session to 4200. In total LME was down roughly around 24,000 tons or 0.05 percent.
LME release for day is up by 22650. Price is expected to correct till 101. Approach should be to take long position around 101. Price may move till 103 in today’s session. Else for long term target that has been set at 105 or even above that," added Amrita.
