Aluminium yesterday traded with the positive node and settled 1.78% up at 112.45, as default risk rose in Greece, market sentiment turned sluggish. In order to prevent escalation and contagion of the debt crisis, GCB and ECB decided to convene an emergency meeting this Thursday and a bailout plan is expected for Greece. As a result, the Euro gained support and rebounded to test 1.42. In the evening on July 19, US Department of Commerce announced that hsg starts in June increased by 14.6% to a new high of 629k since January, which was much higher than the expected 575k. As a result, investor risk appetite increased, with US dollar index erasing earlier gains and falling below 75 several times overnight. At the tail of trading, the US dollar index slightly rebounded and finally closed at 75.101, down 0.28%. Resulting LME aluminum prices regained upward momentum from positive factors, and broke through the 30-dma with both transaction volumes and prices climbing. In yesterday's trading session aluminium has touched the low of 110.35 after opening at 110.35, and finally settled at 112.45. For today's session market is looking to take support at 111, a break below could see a test of 109.6 and where as resistance is now likely to be seen at 113.2, a move above could see prices testing 114.

Trading Ideas:

Aluminium trading range is 109.6-114.

Aluminium ended higher after release of housing starts data investor risk appetite increased

Aluminium stocks held at three major Japanese ports inched up 1.4% in June from May

Aluminium is taking resistance at 113.20 and support is seen at 111.