SINGAPORE: LME aluminium is expected to fall more to $1,966 per tonne, as it has broken a support at $1,985.
The support was provided by the 23.6 percent Fibonacci retracement on the rise from the Oct. 2 low of $1,885 to the Oct. 22 high of $2,016. The next support will be at $1,966, the 38.2 percent retracement. A bounce from the current level could be limited to $1,985, now a resistance.
Eventually, aluminium may fall into a range of $1,935-$1,950, formed by the 61.8 percent and the 50 percent retracements.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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.
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