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Aluminium Price action is influenced by Geo politics and Market behavior

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Aluminium prices surge to highest level since 2011 because of US Sanctions. The restriction has impacted the worlds second largest aluminium producer from Russia. United company Rusal also known as Rusal produces high quantity of aluminium year or year basis, the sanctions on Rusal has potential to affect large chunk of aluminium supply. Thisevent has caused panicamong aluminium investors and speculators influenced them to buy large quantity of base metal in anticipation of shortage. Have a look at the Daily chart of Aluminium Price action.

Aluminium Price action will be driven by Geo politics in coming days

During the Period of March, Prices broke the support zone resting at135.80 136.60, Aluminium prices were trading with a bearish bias and market conditions were pretty normal. Even the breakout had slightly a bearish momentum. But the new event completely changed the scenario upside down! This is a good example of how fundamental events can override technicals.

Aluminium prices rose sharply after US Sanctions hit Rusal, worlds second largest aluminium producer. Volatility increased and Price action rallied heavily from 130 158 within less than 2 weeks. Thats almost35% increasein the metals value. Geopolitics is once again taking the driver seat in Base metals, now onwards price movements will be influenced by Geopolitical game. Traders should watch theprice actionand keep an eye on geopolitical events related to US Russia.

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About the author

Balaji is a Trader, Investor and Self published Blogger. He wrties frequently on his website Balaji is specialised in applying systematic Price action trading strategies and Global Macro techniques on financial markets such as Equities, Dervatives, Futures and Bonds. He is well versed on both International and domestic markets and has trading experience of more than 8 years.  
As a trader his core purpose is to generate superior risk adjusted returns on consistent basis by applying Flexible risk managment combined with a Postive expectancy of Price action strategies. He writes passionately about Technical analysis, Trading strategies, Price Action setups and Global macro events. 
Apart from trading and Blogging, Balaji also mentors aspiring traders, Investors on becoming succesful in highly competative financial markets. He offers permium trading course on which he covers Price action trading methods, Institutional trading strategies and Macro trading.

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