SINGAPORE: LME aluminium may rise to $2,800 per tonne over the next four weeks, based on a triangle and a rising channel.
The contract broke above the upper trendline of the triangle that formed between $1,828 and $2,494, a bullish target at $3,403 has been established over a longer period of time.
But a realistic target within a four-week time frame will be at $2,800, as pointed to by an upper channel line, parallel to the lower trendline of the triangle.
Confirming the bullish outlook is the impulsive wave pattern on the rise from $1,279 to $2,494, as it indicates the current rally could be either a wave "C" or a wave (3), both are capable of pushing aluminium up to $3,043.
Support is at $2,480, a fall below which will extend to $2,400.
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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