Aluminium settled down by -0.8% at 117.7 as investors cashed in gains on perceptions that the post-U.S. election run-up in industrial metals prices had become overstretched. Downside seen limited on signs of new Chinese industrial activity, having already benefited from speculation that U.S. president-elect Donald Trump's pledge to boost infrastructure spending could boost demand. The U.S. economy grew faster than initially thought in the third quarter, notching its best performance in two years, buoyed by strong consumer spending and a surge in soybean exports. Gross domestic product increased at a 3.2 percent annual rate instead of the previously reported 2.9 percent pace, the Commerce Department said in its second GDP estimate. Growth was the strongest since the third quarter of 2014 and followed the second quarter's anemic 1.4 percent pace. Industrial metals have rallied strongly as the outlook for demand improves, mostly on Chinese industrial public works activity and also optimism that the U.S. election victory by Donald Trump will spur infrastructure development. China's National Development and Reform Commission approved a 247 billion yuan ($36 billion) railway plan to link Beijing to neighbouring cities. Activity in China's manufacturing sector likely held onto a modest expansionary trend this month, a poll showed, as industrial firms continued to benefit from higher producer prices and a recovery in demand. Key economic data on US inflation and employment are due to be released this week. Any positive surprise may prompt a renewed wave of US government bond selling, pushing yields higher. Technically market is under long liquidation as market has witnessed drop in open interest by -10.27% to settled at 1433, now Aluminium is getting support at 116.7 and below same could see a test of 115.7 level, And resistance is now likely to be seen at 118.9, a move above could see prices testing 120.1.

Trading Ideas:

Aluminium trading range for the day is 115.7-120.1.

Aluminium dropped as investors cashed in gains on perceptions that the post-U.S. election run-up in prices had become overstretched.

The U.S. economy grew faster than initially thought in the third quarter, notching its best performance in two years.

Activity in China's manufacturing sector likely held onto a modest expansionary trend this month, a poll showed, as industrial firms continued to benefit.