SINGAPORE: LME aluminum will fall to $2,097 per tonne, a low touched on Nov. 10, as pointed by the lower channel line of a falling channel.
There are two small five-wave cycles on the fall from the Nov. 14 high of $2,197, indicating the metal is riding on a powerful wave (3) which will become a key driver in the formation of a medium-term downtrend.
Resistance is at $2,152, a break above which will invalidate the bearish target.
** 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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