SINGAPORE: LME aluminium is biased to retest a resistance at $2,168 per tonne, a break above which could lead to a gain to the next resistance at $2,191.
The bounce from the March 1 low of $2,118 has extended above a falling trendline. This is a bullish signal that the downtrend from $2,228 may be further reversed.
So far, the metal has been hovering above a key support at $2,131, the 61.8 percent projection level of a downward wave c. As long as aluminium stays above this support, it may have a better chance of bouncing more.
A break below $2,131 may cause a loss to $2,108.
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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