Aluminium yesterday traded with the positive node and settled 0.05% up at 104.40 market trading in the range as European secondary aluminium prices remained flat last week, with most market participants on both the producer and consumer sides taking holidays over the second half of July. Meanwhile china’s confirmation of strict property curb will erode metals demand. The financial aid call of Valencia in Spain reignited worries towards the European debt crisis. The US dollar index surged above 83.5 on Friday, inducing losses across commodities. LME aluminum lost support at the 30-day moving average, hitting a low of USD 1,889.8/mt, before recovering slightly to close at USD 1,894.8/mt, down USD 46.3/mt or 2.38%. Risk aversion has been reignited as investor focus shifts to debt-ridden European nations. LME aluminum is expected to be pressured at the USD 1,900/mt mark and hover between USD 1,868-1,908/mt lacking upward momentum. In yesterday's trading session aluminium has touched the low of 104.25 after opening at 104.3, and finally settled at 104.4. For today's session market is looking to take support at 104.3, a break below could see a test of 104.2 and where as resistance is now likely to be seen at 104.5, a move above could see prices testing 104.6.

Trading Ideas:

Aluminium trading range for the day is 104.17-104.57.

Aluminium is trading in the range as European secondary aluminium prices remained flat last week

China’s confirmation of strict property curb will erode metals demand.

Aluminium weekly stocks at Shanghai exchange came up by 8372 tonnes