SINGAPORE: LME aluminium may retest a resistance at $2,053, as a bounce from the Oct. 11 low of $2,017.50 has not completed.
The bounce occurred after a five-wave cycle from $2,267. It consists of three waves. So far, only two waves have unfolded. The third wave labelled c is still progressing towards $2,054, the 14.6 percent retracement on the drop from $2,267 to $2,017.50.
The bounce may develop into a shape that is roughly symmetrical to the circled part. Under this assumption, the metal may rise into the range of $2,076-$2,103. A drop below $2,017.50 could be extended to $1,995, as pointed by a falling trendline.
* The analysis is based on delayed data, prediction may be affected.
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*** 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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