SINGAPORE: LME aluminium may rebound further to $1,985 per tonne, as it has cleared a resistance at $1,966.
The resistance was provided by the 38.2 percent Fibonacci retracement on the rise from the Oct. 2 low of $1,885 to the Oct. 22 high of $2,015.75. After approaching a support at $1,950, the 50 percent level, aluminium failed to fall further, instead, it started a bounce.
This bounce could be due to the development of the right shoulder of a head-and-shoulders. Given that the left shoulder is at the Oct. 20 high of $1,990, the right shoulder may form around $1,985, the 23.6 percent level.
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.
Comments
Comments are closed.