Aluminium yesterday traded with the negative node and settled -0.22% down at 111.45 as market focus was on whether Spain could get aid from ECB with its fiscal tightening last Friday, helping commodities not fall further. However, objection from German finance minister kept investors alert. In response, LME aluminum tumbled to a low of USD 2,100/mt, LME aluminum moved narrowly around USD 2,115/mt, merely touching a high of USD 2,128/mt, with strong resistance at the 5-day and 10-day moving average. Aluminum prices will be weak as investors are cautious on worries over the European debt crisis and the upcoming National Day holiday. Prices saw support last week after the reported that Spain is moving closer to requesting a sovereign bailout and is currently working out the terms with European Union policymakers. A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would lower borrowing costs in the large European economy. Yields on Spanish 10-year bonds this year have repeatedly soared above the 7% threshold considered unsustainable by the markets. In yesterday's trading session aluminium has touched the low of 111.3 after opening at 111.7, and finally settled at 111.45. For today's session market is looking to take support at 111.3, a break below could see a test of 111.1 and where as resistance is now likely to be seen at 111.7, a move above could see prices testing 112.

Trading Ideas:

Aluminium trading range for the day is 111.05-111.95.

Aluminium ended lower tracking weakness in other base metals as investors are cautious on worries over Euro debt crisis

China's Customs report showed that the unwrought Aluminium imports gained by 61309 tonnes, up 423% in August

A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would lower borrowing costs