Five Month Lows For Aluminium

Five month lows for Aluminium is expected to extend into further losses as the technical and psychological levels are getting breached on a day to day basis. The LME Aluminium prices slipped below $ 1900 per tonne levels and tested a low not seen since September 2012. Decline below $ 1900 has opened gates from where it can go anywhere from $ 1850 to $ 1800 per tonne provided the conditions in financial markets remain as they are.
The Chinese automobiles sales have been dipping, inventories have been piling and to add to the woes the latest PMI index in US slipped sharply down including the new orders. Choppiness in currency markets is another concern for the sluggish metals. The Dollar is likely to be bought against the Euro if the crisis of European Union relating to bankruptcy, uncertainty in governance continues.
On MCX, Aluminium has declined so much that the pace of selling is slow but the trend continues to favor bears. The April contract was last seen at Rs 103.2 per kg, down 0.77%. Supports for the contract are at Rs 102.5 and 101.6 per kg, breaching which a whole new level of technical supports will emerge taking into account that this level hasn't been breached since August last year.
source by Commodity Insights