MCX Aluminium Above 125 Target 138—142, Buy on Dips – Aluminium on MCX settled up 0.04% at 130.85 gained from the day’s low on short covering tracking 3-month aluminium price on the London Metal Exchange which was little changed on Tuesday February 19, with continued volatility in stock flows across LME-listed Malaysian warehouses doing little to jolt the metal’s stagnant price action.
LME aluminium has failed to trade above $2,000 per tonne since October 2018 and has consolidated in thin ranges around $1,850 per tonne since the start of the year.
Equally, more than 300,000 tonnes of aluminium has left predominantly Malaysian warehouses since the start of the year, while rewarranting of just under 15,000 tonnes has been met with little movement in the metal’s three-month price.
Additionally, open interest in aluminium has dipped from its highest level since July 2018 at more than 92,000 open positions, to just over 90,000. Last night base metals traded higher on Tuesday tracking firmness from LME Nickel which advanced 1.6%, copper rose 1.1%, zinc climbed 0.8%, aluminium edged up 0.2%, while lead fell 0.4%.
The US dollar on Tuesday fell against a basket of other currencies as optimism about the outcome of a fresh round of US-China trade talks in Washington this week prompted traders to scale back their safe-haven greenback holdings.