Aluminium yesterday traded with the negative node and settled -1.87% down at 109.35 as continued market panic fuelled by pessimism towards future global economy pressed global stock and commodity prices lower overnight, while sending the US dollar index to 75 and gold price back again to USD 1,900/oz. During European trading hours, LME aluminum prices fell below the 20-day moving average to USD 2,377/mt due to strong short-selling and over 3% loss in crude oil prices etc. The metal finally closed at USD 2,392/mt, down USD 50/mt or 2.05% after a slight rebound at the tail of trading. Concerns that the global economic recovery is losing momentum were underlined on Friday, after a government report showed that the U.S. economy added zero jobs in August, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 last month. The unemployment rate remained unchanged at 9.1%. Adding to global worries, German Chancellor Angela Merkel's ruling party was defeated in local elections on Sunday, exacerbating fears over the region’s ongoing sovereign debt crisis. For today's session market is looking to take support at 108.6, a break below could see a test of 107.8 and where as resistance is now likely to be seen at 110.5, a move above could see prices testing 111.7.

Trading Ideas:

Aluminium trading range is 107.8-111.7.

Aluminium settled down weighed down by continued market panic fueled by pessimism towards global economy

Aluminium downside is not more as prices are now below the high-cost marginal producer.

August's PMI for service sector announced from China, euro zone members and the UK were generally sluggish.