SINGAPORE: LME aluminium may bounce to $1,907 per tonne in a week, as it has managed to form a bottom around a support at $1,846.
The support is provided by the 38.2 percent projection level of an upward wave C from $1,807.50.
Even though this wave has completed, the fall from the Feb. 6 high of $1,936 has been controlled by the various projection levels.
An inverted head-and-shoulders developing from the Feb. 12 low of $1,854 has more or less completed.
It suggests a target around $1,907.
It is hard to categorize the anticipated gain, which could be a resumption of the uptrend from $1,785.50 or just a bounce against the fall from $1,936.
A break below $1,846 could signal the continuation of the downtrend towards $1,807.50.
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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