Thursday, July 19, 2012

MCX ALUMINIUM TIPS 19 JUL 2012


BARGAIN HUNTING HELPED ALUMINIUM TO BUOY AT MCX
DATE: 19/07/2012  
     Aluminium buoyed by 0.5% or R 0. 5 at R 104.7 per kg on Wednesday, 18 July and tested an intraday high at R 105 per kg and low at R 104.1 per kg. Aluminium was in downtrend since June 2012 and ended tad higher on Wednesday bolstered by some bargain hunting with 12% dip in its open interest to 9809 lots. The contract traded below 9-day EMA and RSI stood at 42.07. Aluminium is likely to find support at R 104.1 per kg and R 103.6 per kg and resistance at R 105.2 per kg and R 105.5 per kg.
At LME, Aluminium erased previous session losses and plunged by 1.2% at $1895 per tonne on Wednesday. The disappointment over Federal Reserve additional stimulus hopes conspired with the festering European debt crisis on German Chancellor Merkel's comments led the metal to slump down. But, the constructive housing data from the US and China solaced the metal to curb huge losses.



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