Aluminium yesterday traded with the positive node and settled 0.83% up at 114.45 tracking LME aluminum prices opened at USD 2,535/mt, and later rebounded after falling to a low of USD 2,498/mt, and finally closed at USD 2,541/mt, up USD 11/mt compared with the previous trading day. The US Labor Department announced on Thursday that the initial jobless claims fell to 390,000 last week, slightly lower than the expected 400,000. In addition, the US Commerce Department announced that the US new home sales in January declined by 12.6%. The weak home sales data and strengthening Swiss franc and Japanese yen weighted on US dollar. As a result, the US dollar index opened at 77.31 and closed at 77.03, down 0.36%. LME aluminum inventories fell by 5,000 mt to 4,615,500 mt. In yesterday's trading session aluminium has touched the low of 112.1 after opening at 113.5, and finally settled at 114.45. For today's session market is looking to take support at 112.8, a break below could see a test of 111.1 and where as resistance is now likely to be seen at 115.5, a move above could see prices testing 116.5.

Trading Ideas:

Aluminium trading range is 111.1-116.5.

Aluminium seen well-supported from China/European demand

Aluminium is taking support at 113.20 and resistance at 116 level.

Aluminium daily stocks at Shanghai exchange came down by 345 tonnes.

YESTERDAY LME STOCK FOR ALUMINIUM CAME DOWN  BY -5000