SMM Brief Review - 2011/8/26 Aluminum Futures: Most Active Contract Breaks 60-day Moving Average

SHANGHAI, Aug. 26 (SMM) – Most active SHFE 1111 aluminum contract opened slightly higher at RMB 17,330/mt on August 26th. After meeting temporary strong resistance, the contract broke through the 60-day moving average with increased buying, hitting an intraday high of RMB 17,445/mt. The contract finally closed RMB 80/mt or 0.46% higher at RMB 17,380/mt after partially erasing earlier gains due to profit-taking. Though most active SHFE aluminum contract finally broke through the 60-day moving average and hit a week high with improved investor risk appetite, SMM expect it to test RMB 17,450/mt in the short term given cautious market sentiment, and may slightly go up if US Fed president announces economic stimulation policies.