Since submission of my second last analysis on April 18th, 2018 Aluminum future have seen sharp upheavals during the last few days. On analysis of the movement of Aluminum futures in the same chart pattern which I noted in my last analysis, I find that the Aluminum futures look ready to divert their face towards the economic realities describing the actual demand and supply equation.
No doubt that the news flow during the last few days has provided new range to Aluminum futures which is evident enough to make them moving amid different noises. Having a relook at the current level of Aluminum futures in the same chart which I noted in my last analysis, I find the Aluminum futures to be swinging amid alluring levels which may prove to be mare illusion due to large inflow of Aluminum from United Company Rusal Plc (MCX:RUAL) (MCX:RUAL) and from the China too. On the other hand, U.S. economy slowed in the first quarter as consumer spending grew at its weakest pace in nearly five years, but the setback is likely temporary against the backdrop of a tightening labor market and large fiscal stimulus.
On analysis of the movement of Aluminum futures on April 29th, 2018 in the same chart in different time frames, I find that the Aluminum futures have entered into a new zone of volatile moves on either side from the current levels. But one thing is certain that every steep move will be followed by an equally strong counter move in opposite direction. These kinds of moves make the Aluminum futures to swing amid allure and illusions.
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