LME aluminium to drop to $2,132/T

SINGAPORE: LME aluminum will drop to $2,132 per tonne, as a small five-wave cycle has peaked at the Thursday high of $2,197.

The cycle has been developing in a rising channel, and the lower channel line points to a target of $2,132, the 38.2 percent Fibonacci retracement on the rise from $2,027.75 to $2,197.

The bearish divergence on the hourly RSI indicator suggests the metal has been overbought.

A fall below $2,131 will extend to $2,112, the 50 percent level.

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