LME aluminium may test resistance at $1,787 this week

• The resistance is identified as the 38.2pc projection level of a downward wave C from $1,866.
• The metal has broken a lower resistance at $1,763. It is expected to test $1,787.
• The pattern from the Nov. 19 low of $1,728 could turn out to be a flat or a part of a flag.

SINGAPORE: LME aluminium may test a resistance at $1,787 per tonne this week, a break above which could lead to a gain to $1,817.

The resistance is identified as the 38.2pc projection level of a downward wave C from $1,866.

The metal has broken a lower resistance at $1,763. It is expected to test $1,787.

The pattern from the Nov. 19 low of $1,728 could turn out to be a flat or a part of a flag. In either case, the metal may climb to $1,787 first. A break below $1,739 could cause a fall to $1,709.