SINGAPORE: LME aluminium may retest a support at $1,733 per tonne this week, probably after a moderate bounce to a resistance at $1,779.
The support and the resistance are identified as the 61.8% and the 23.6% projection levels of a downward wave c, the third wave of a presumed three-wave cycle from $1,866.
Two hammers forming on Aug. 30 and Aug. 29. They indicate the support at $1,733 may hold for a few days. Aluminium has to bounce towards a falling trendline first before retesting the support.
A break below $1,747 could be the early signal that the bounce is over.
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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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