Tips for Aluminium by KediaCommodity

 Aluminium yesterday traded with the positive node and settled 0.05% up at 109.95 as taking clues from LME aluminum closed down at USD 2,175/mt last Friday, after paring losses with a weakening US dollar. Volatile aluminum inventories, however, had limited the metal’s ability to recover losses. LME prices continued to drift lower but support seen by China’s cut in bank requirement reserve ratio, the US February’s lower-than-expected new home sales data weighed on US equity market and LME prices to hit a low. The US dollar index continued to slip last week, but conditions in the euro zone were not optimistic. Government bond yields of other European countries grew significantly higher than those of Germany. The slightly improved market sentiment following implementation of ECB third round three-year LTRO seemed to deteriorate further, weighing on the euro to certain extent. Generally speaking, LME prices were weighed down last week on negative global economic news, but LME prices are expected to stabilize to certain extent on Monday as market has absorbed negative impact from these news. In yesterday's trading session aluminium has touched the low of 109.85 after opening at 109.9, and finally settled at 109.95. For today's session market is looking to take support at 109.9, a break below could see a test of 109.8 and where as resistance is now likely to be seen at 110, a move above could see prices testing 110.1.