Industry Info

LME aluminium to retrace to $1,800

LME aluminium to retrace to $1,800

LME aluminium may have completed a rebound from the Sept. 5 low of $1,785.25 per tonne, or the first round of this rebound, and is expected to drop to $$1,800.

The rebound is against a five-wave cycle starting from the Aug. 22 high of $1,920 and ending at the Sept. 4 low of $1,785. A Fibonacci retracement on the cycle reveals a resistance at $1,837, the 38.2 percent level.

It is obvious that the short uptrend from $1,785 started to reverse when the metal approached $1,837.

A break above $1,837 will lead to a further gain to $1,853, the 50 percent retracement.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Source: Reuters