LME aluminium to approach $1,975

14 Oct, 2014

SINGAPORE: LME aluminium is expected to approach resistance at $1,975 per tonne, as indicated by its wave pattern and a Fibonacci retracement analysis.

The rebound from the Oct. 2 low of $1,885 consists of three waves. So far only two have completed. The third wave, the wave c, has travelled above resistance at $1,940, the 23.6 percent retracement, and is unfolding towards $1,975, the 38.2 percent Fibonacci retracement on the fall from the Aug. 29 high of $2,119.50 to $1,885.

A drop to $1,930 could be extended to $1,919, the 14.6 percent retracement.

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.

Copyright Reuters, 2014

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