Aluminium Snapped Three Consecutive Session Gains At MCX

MCX Aluminium for delivery in July 2012 slumped by 0.9% at Rs 105.6 per kg on Friday, 6 July and tested an intraday high at Rs 106.55 per kg and low at Rs 105.25 per kg.

Aluminum traded on a positive note for the first four consecutive days of the week and erased previous gains on Friday amid huge short selling with 20% rise in its open interest to 8410 lots. The contract traded below 9-day EMA and RSI stood at 38.48.

At LME, Aluminium plunged back to the weeks low on Friday having dropped by 1.5% at $1919.5 per tonne. Aluminium dropped for the second consecutive day as the bleak US non-farm payrolls data added to the slower global economic growth woes and pulled down the metal. But, the decline in the aluminium inventories with rise in cancelled warrants restricted huge fall in the metal.

MCX Aluminium is likely to find support at Rs 105 per kg and Rs 104.5 per kg and resistance at Rs 106.3 per kg and Rs 106.7 per kg on Monday, 9 July. [ News Source ]

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