ALUMINIUM SLUMPED TO 3-MONTH LOWS AT MCX
Date: 11/04/2012
MCX Aluminium plunged to 3-month lows by 0.9% or Rs 0.95 to Rs 106.15 per kg with its high at Rs 107.55 per kg and low at Rs 106.05 per kg on Tuesday, 10th April. Aluminium was interpreting a downtrend since March 2012 and further slumped to its 3 month lows amidst the huge short selling in the market with 7% rise in its open interest to 7721 lots. As the LME is opened after along weekend, the volume traded stood at 9859 lots compared to 1223 lots traded last day. The contract traded below 9-day EMA and RSI stood in oversold region at 23.8. Depreciation in Rupee cramped the metal from its further fall.
At LME, Aluminium dropped for the third consecutive day and stood near to the 3-month lows. Aluminium edged down by 0.1% at $2089 per tonne on Tuesday. The weaker demand from China, gloomy spate from US and Europe Aluminium and investors focus on the major Aluminium giant company Alcoa earnings result due yesterday pressurized the metal.
Chinese customs reported that the aluminium imports were shed by 3.3% to 120,494 tonnes in March 2012 on m-o-m basis while its exports were increased by 43% to 67983 tonnes in March on m-o-m basis.
Aluminium at MCX is likely to find support at Rs 105.6 per kg and Rs 104.8 per kg and resistance at Rs 106.7 per kg and Rs 107.6 per kg on Wednesday, 11th April.
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