Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 16 July 2014

Aluminium settled up 1.25% at 117.40 tracking gains from LME aluminium prices which rose to a 13-month high of USD 1,967.3/mt as inventories tracked by the LME fell to their lowest level since 2012. China’s economic indicators released Tuesday were upbeat, with June’s lending and money supply rising faster than expected. In the euro zone, the ZEW indicators of economic sentiment for the euro zone and Germany turned out weaker than expected, while the US economic signposts were mixed. The US retail sales for June were sluggish, but the Empire State NY Fed manufacturing index was far beyond forecast in July. The Fed Chairwoman Janet Yellen said while testifying before the Congress that the US economic outlook remained largely uncertain and investors were pondering the testimony to find out some clues about interest rate rise. In China, the PBOC announced the new RMB lending in June hit RMB 1.08 trillion, up RMB 216.5 billion from a year ago and staging a spike from May’s RMB 870.8 trillion, and surpassing the RMB 955.0 billion expected. The M2 stood at RMB 120.96 trillion by the end of June, posting a 14.7% YoY growth. China’s new RMB loans through the first half of the year amounted to RMB 5.74 trillion, up RMB 659.0 trillion. Total financing during the first six months also increased RMB 414.6 billion YoY to hit a record high of RMB 1.057 trillion. Technically market is under fresh buying as market has witnessed gain in open interest by 13% to settled at 7743 while prices up 1.45 rupee, now Aluminium is getting support at 116.4 and below same could see a test of 115.2 level, And resistance is now likely to be seen at 118.1, a move above could see prices testing 118.6.