The most-traded SHFE aluminium contract opened in the night session on July 27 at RMB 23,255 per tonne, hit a high of RMB 23,320 per tonne, a low of RMB 23,230 per tonne, and closed at RMB 23,275 per tonne, up 0.34 per cent from the previous close. During this period, prices inched higher within the consolidation range and ended with a bullish candlestick, holding above the short-term MA cluster of MA5 (23,240.47), MA10 (23,227.58), MA20 (23,196.05), and MA40 (23,223.35); the moving average system provided bottom support, while upside was capped by the medium- and long-term MA60 (23,339.00).
The recent low of 22,875 served as effective support, and the market centre shifted steadily higher. Trading volume during the period was 64,858 lots, shrinking from the prior session, while open interest stood at 252,000 lots, edging up slightly. Technically, on the 4-hour chart, the MACD’s DIFF (28.90) stays above the DEA (21.03), with the golden cross continuing, and the red histogram in positive territory, indicating that bullish momentum remains.
In the near term, the market will likely continue to move sideways, and an upside breakout still needs fresh capital inflows. LME aluminium opened on July 27 at USD 3,164 per tonne, hit a high of USD 3,187.5 per tonne, a low of USD 3,150 per tonne, and closed at USD 3,173 per tonnes, up 0.25 per cent from the previous close.
During the session, prices moved sideways with a slight gain, trading near the MA5 (3,173.12) and facing resistance from the MA10 (3,169.65) and MA20 (3,185.66); the medium- and long-term moving averages MA40 (3,258.23) and MA60 (3,301.45) remained in a bearish alignment, forming overhead resistance. The recent low of 3,040 provided solid supports, and the rebound pace was relatively slow.
Daily volume was 9,815 lots, shrinking from prior sessions, while open interest stood at 591,000 lots, down slightly from the previous session. Technically, on the daily chart, the MACD’s DIFF (-41.03) stays above the DEA (-58.79), with the golden cross structure intact, and the red histogram in positive territory, suggesting the market will likely consolidate at lows for repair in the near term. Upside room is constrained by macro and supply expectations.