Aluminium yesterday traded with the negative node and settled -1.76% down at 107.85 as investors continued to absorb the negative news that China's imports for April fell to an eight-month low. However, some investors conducted bargain hunting later. Besides, the US announced initial jobless claims slipped last week and that March's imports hit a record high, which eased market sentiment. Meanwhile, Spanish govt successfully nationalized Bankia, one of the country's largest banks, in a bid to attack rumors that it cannot solve problems for its banking industry, while the Socialist leader in Greece was trying again to form a coalition government. In this context, investor worries over the European debt crisis cooled somehow, helping LME prices pare the losses registered. Nevertheless, there was still large-scale profit-taking at the tail of trading, and investors shifted their focus on China, which would announce important economic data the next day. As a result, LME prices surrendered some of earlier gains and finally settled with a slight gain. Markets will eye on China's key economic figures including the CPI data. LME copper prices will likely continue to challenge the previous day's highs. However, the euro will remain weak owing to the prevailing European debt issues, which will restrict copper to move higher. For today's session market is looking to take support at 107.3, a break below could see a test of 106.8 and where as resistance is now likely to be seen at 108.9, a move above could see prices testing 110.

Trading Ideas:

Aluminium trading range for the day is 106.75-109.95.

Aluminium settled -1.76% down as investors continued to absorb the negative news that China's imports for April fell.

US announced initial jobless claims slipped last week and that March's imports hit a record high, which eased market sentiment

LME prices surrendered some of earlier gains and finally settled with a slight gain.