SINGAPORE: LME aluminium will drop further to the Feb. 7 low of $2,207 per tonne, as indicated by its wave pattern and a rising channel.
A medium-term uptrend rising from the Dec. 14, 2011 low of 1,955.75 could have completed after developing five waves, with wave (5) having peaked at the Feb. 9 high of $2,303.
The drop on Friday has violated a rising channel, and the lower channel line of a duplicated channel points to a target at$2,207, the wave "2" trough.
Strategically, the target will be confirmed only after a support at $2,236 is broken.
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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