SINGAPORE: LME aluminium may break a resistance at $1,909 per tonne this week and rise towards $1,993, as suggested by its wave pattern and a projection analysis.
These resistances are identified respectively as the 50 percent and the 38.2 percent projection levels of a downward wave C from $2,267.
This wave temporarily ended around a support at $1,824. The bounce caused by this support consists of three waves. The current third wave labelled c has pierced above $1,909 twice, it is highly likely to overcome this barrier and travel towards $1,993, as pointed by a falling trendline.
A detailed study on the hourly chart reveals a support at $1,884, the 76.4 percent projection level of an upward wave (c), a break below which could cause a loss into the range of $1,857-$1,869.
The analysis will be published once a week on Monday.
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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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