LME aluminium signals mixed

16 Oct, 2014

SINGAPORE: Signals are mixed for LME aluminium as it has managed to hover around support at $1,919 per tonne.

Support is identified as the 14.6 percent Fibonacci retracement on the fall from the Aug. 29 high of $2,119.50 to $1,885. A break below this barrier will confirm a continuation of the correction from the Oct. 9 high of $1,969, towards the Oct. 2 low of $1,885.

In the meantime, an extension of the rebound from $1,885 will not be confirmed until aluminium climbs above resistance at $1,940, the 23.6 percent level. The bias could be towards the downside.

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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