LME aluminium may test support at $2,017

SINGAPORE: LME aluminium may test a support at $2,017 per tonne, a break below which could cause a loss to the next support at $1,938.

The first support is provided by the 61.8 percent projection level of a downward wave C from $2,353. Even though this wave has ended, its various projection levels may still control the current downtrend.

The metal failed a few times to break the support at $2,017. This time, it may succeed due to its strong bearish momentum. The bounce from July 19 low of $2,001.50 has taken the shape of an expanding wedge, which may turn out to be a bearish continuation pattern.

A break above $2,081.50 could lead to a gain to $2,146.

The analysis is based on delayed data, prediction may be affected.