SINGAPORE: A bearish target at $2,029 per tonne will be established if LME aluminum can clear a support at $2,077.75, a low touched on Oct. 20.
The metal seems to be riding on a fierce wave (3), capable of traveling to $2,029, the 161.8 percent Fibonacci projection level, based on the length of the wave (1) and the peak of the wave (2) at $2,165.
Most obvious is the five-wave mode on the fall from $2,165 to $2,080, signaling the fiercest drop is yet to come.
Strategically, the target at $2,029 will only be confirmed after the presumed wave "5" trough at $2,080 is broken below.
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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