SINGAPORE: LME aluminium is expected to drop to $2,002 per tonne, as it has failed to break a resistance at $2,029.
The resistance has been identified as the 61.8 percent Fibonacci retracement on the fall from the Sept. 8 high of $2,118 to the Oct. 2 low of $1,885. The metal's failure to overcome this barrier signals the completion of a rising wedge that developed from $1,885.
The immediate support will be at $2,002, the 50 percent retracement, a break below which will lead to a further loss to $1,974, the 38.2 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.
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