The correction could consist of three waves. So far, only two have unfolded. The third wave labelled c seems to have started, travelling towards $1,919, the 14.6 percent Fibonacci retracement on the fall from the Aug. 29 high of $2,119.50 to $1,885.
Strategically, the target at $1,919 will be confirmed when aluminium breaks support at $1,940, the 23.6 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.