Aluminium settled up 0.6% at 125.75 buoyed by a bunch of sunny economic numbers from the US. Prices also rose after Alcoa, the largest US aluminium producer, said it was permanently closing its high-cost 150ktpa Portovesme aluminium smelter in Italy. However upside seen limited due to rising US dollar and growing worries about a possible interest rate hike by the US Fed.  series of US economic figures, released on Tuesday, were encouraging, while geopolitical strains in Ukraine eased some, both helping bolster base metals. US Conference Board’s consumer confidence index rose in August to 92.4, beating July’s reading of 90.3 and the expected 89, adding credence to the idea that US economic outlook is positive in H2 2014. The Richmond Fed Manufacturing Index climbed in August to 12, its highest since March 2011, while US durable goods orders for July grew 22.6% MoM, well above the estimated 8% increase, boosted by a sharp rise in transportation orders. Core durable orders excluding transportation equipment dwindled in the month 0.8% MoM, posting the biggest fall since the start of the year and undershooting a 3.0% rise in June. The S&P/Case- Shiller Home Price Index report revealed that the home price index covering 20 major US cities in June edged up 8.1% YoY, the slowest growth since January 2013.Technically market is under short covering as market has witnessed drop in open interest by -8.91% to settled at 5604 while prices up 0.75 rupee, now Aluminium is getting support at 124.7 and below same could see a test of 123.6 level, And resistance is now likely to be seen at 126.7, a move above could see prices testing 127.6.

Trading Ideas:

Aluminium trading range for the day is 123.6-127.6.

Aluminium gained buoyed by a bunch of sunny economic numbers from the US.

However upside seen limited due to rising US dollar and growing worries about a possible interest rate hike by the US Fed

The Conference Board’s consumer confidence index rose to 92.4 in August, its highest level since October 2007.