ALUMINIUM PLUNGED TO 6-WEEK'S LOW AT MCX
Date: 02/04/2012
Aluminium plunged to further lows at MCX with a sharp fall during the week and stood near to the major support level of Rs 108 per kg. Huge short selling with 22% rise in its open interest to 5566 lots hammered the metal at domestic bourses MCX. Aluminium slumped by 1.1% or Rs 1.1 to Rs 104.85 per kg with its high at Rs 105.2 per kg and low at Rs 103.5 per kg on Friday, 30th March. The contract stood below 9-day EMA and RSI stood in oversold region at 21.02. Any positive news out of global market might help the short sellers to cover their positions.
At LME, Aluminium shed for the second consecutive day by 0.3% at $2139.5 per tonne on Friday. The Chinese demand growth woes overshadowed the sanguine data from the US and overwhelmed the metal. But, the decline in aluminium inventories by 5225 tonnes to 5063,350 tonnes yesterday weighed on the sentiment.
Aluminium at MCX is likely to find support at Rs 107.7 per kg to Rs 107.3 per kg and resistance at Rs 109.2 per kg and Rs 110.1 per kg on Monday, 2nd April.
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