SINGAPORE: LME aluminium may retest a support at $1,791 per tonne this week, with a good chance of breaking below this level and falling towards the July 2 low of $1,771.50.
The support is identified as the 61.8% retracement of the uptrend from $1,745 to $1,866. The trend has reversed, as suggested by its three-wave mode and the depth of the fall from $1,866.
The bounce triggered by the support at $1,791 is indeed a pullback towards a rising trendline. Resistance is at $1,820, a break above which could lead to a gain into the range of $1,837-$1,848.
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*** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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