MCX ALUMINIUM TIPS 04 JUN 2012

ALUMINIUM DROPPED TO 2-WEEK'S LOW ON SHORT SELLING AT MCX

DATE: 04/06/2012       

               Aluminium dropped to 2-week's low by 2.3% or Rs 2.5 at Rs 108.85 per kg with an intraday high at Rs 111.3 per kg and low at Rs 108.7 per kg on Friday, 1st June. Aluminium breached the major support of Rs 109 per kg and plunged for the third consecutive day. Short selling with 9% rise in its open interest to 2273 lots weighed down the metal. The contract traded below 9-day EMA and found to be oversold region with its RSI at 25.8.

At LME, Aluminium slumped to December 2011 lows by 1.7% at $1979 per tonne on Friday, 1st June as the intensified woes on global growth economy pertaining to Euorpe But, the supply tightening in the market with the decline in LME inventories and increase in aluminum premiums restricting further fall in the metal.

MCX Aluminium was finding strong support at Rs 107.5 per kg and Rs 107 per kg and resistance at Rs 108.9 per kg and Rs 109.8 per kg on Monday, 4th June.

                                                                                   

POWERED BY: COMMODITY INSIGHTS

www.goldennifty.com