Aluminium yesterday traded with the negative node and settled -0.23% down at 108.40 as Europe is actively seeking a rescue plan for Spain's troubled banks. In the downturn of the global economy, China and the United States may launch a stimulus to boost investor confidence. Under this nice anticipation, the US dollar index fell sharply overnight to nearly 82. During European trading, though stocks and other base metals presented strong rebounds, LME aluminum's performance was weak, only touching a high of $1,994/mt with strong pressure at the 5-day moving average. It dropped sharply to $1965/mt, a fresh low this year, but recovered to settle up $9/mt or 0.46% at $1,981/mt. Aluminum is exhibiting a technical rebound after falling for several days. LME aluminum is expected to see its bottom up a little and test resistance at the 5-day moving average while moving between $1,970-2,000/mt. Despite the ECB's move in maintaining interest rates unchanged and easing worries over the Spanish issue, there is still much uncertainty ahead of the Greek election. In yesterday's trading session aluminium has touched the low of 107.7 after opening at 109.1, and finally settled at 108.4. For today's session market is looking to take support at 107.5, a break below could see a test of 106.6 and where as resistance is now likely to be seen at 109.5, a move above could see prices testing 110.7.

Trading Ideas:

Aluminium trading range for the day is 106.57-110.67.

Aluminium gains after central banks said they will release stimulus policies, easing market concerns

In the downturn of the global economy, China and the United States may launch a stimulus to boost investor confidence.

European Central Bank announced to keep both interest rates and economic growth expectations unchanged.