ZOID RESEARCH 28-MAR-2014 :ALUMINIUM

We had suggested a sell view on aluminum in Thursday’s trading session while prices were seen trading down until early in the US session. Later on, aluminum recovered slightly and its 3 month forward prices at the LME ended at $1738, up $9 from the previous close. We believe that the gains may have been a 

clean short covering on the recent bearish trend. We could suggest such an opinion as the trading volume of aluminum at the LME was very thin and remained much below the 15-days moving average. Likewise, the MCX March expiry ended the day at Rs 102.05 while it made its intraday low of Rs 101.40. Also, there are two working days are left for this metal’s March contract’s expiry and hence, volumes may rise due to short covering while the open interest may decline.

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