Aluminium May Witness Losses Trading At $1837 Up By 0.14%
CommodityOnline | Apr 29, 2014 05:30AM ET
Aluminum: We had a bearish view on Aluminum last day with the anticipation that the commodity may take price correction in the form of profit booking on the long positions. Also, a rebound in the inventory supported the metal to retreat from the highs. 3 month forward LME Aluminum ended the day at $1826.75 down by $22 from its previous close. In the similar lines prices at MCX for April future also declined and ended at Rs. 108.80 down by Rs. 1.80 from its previous close. We saw prices taking downward correction since the beginning of the session on Monday which was followed through during the day. Although US equities posted a mixed close and the countries pending home sales number improved but a broad based sell of pulled the metal to trade down. This morning Aluminum at LME is seen trading at $1837 up by 0.14% from its previous close and likely that the losses may be extended during the day. We continue to hold a bearish view on the prices. However, we also suggest that the price fall on today’s trading session may not be as it had fallen last day. While, we look at the price- volume and open interest, the derivative analysis suggest some more selling in the future contract is expected as the prices have fallen with higher volume. Looking at the above scenario we suggest selling Aluminum for the day.
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