LME aluminium to fall more to $1,816 per tonne

SINGAPORE: LME aluminium is expected to fall more to $1,816 per tonne, as it has broken a support at $1,853.

The support was provided by the 38.2 percent Fibonacci retracement on the fall from the December 5, 2014 high of $2,008 to the January. 14 low of $1,757. The next support will be at $1,816, the 23.6 percent level.

The depth and the duration of the fall from the February 3 high of $1,898 indicates a completion of the rebound from $1,757. A rise above $1,853, now a resistance, could be extended to $1,883, the 50 percent level.