SINGAPORE: LME aluminium may try to stay above a support zone of $2,024.50-$2,028 per tonne and then rise towards a resistance at $2,051.
The zone is formed by the Aug. 3 low and the 76.4 percent retracement of the uptrend from $2,001.50 to $2,114.
The bounce from $2,001.50 may consist of three waves. The second wave, labelled B, could have ended at $2,024.50.
This wave will be totally reversed by an upward wave C which may travel into a range of $2,094-$2,137. So long as aluminium hovers above $2,024.50, the bullish view will remain unchanged.
A break below $2,024.50 could cause a loss to $2,001.50.
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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