SINGAPORE: LME aluminum will drop further to $2,068 per tonne, as indicated by a rising channel and a Fibonacci retracement analysis.
The metal has almost dropped below the rising channel that it has been climbing up since Jan. 5. A duplicated channel points to a target at $2,068, the 76.4 percent Fibonacci retracement on the rise from $2,027.75 to $2,197.
The drop towards the target has been temporarily interrupted by a weak support at $2,112, the 50 percent retracement.
The support is expected to be broken soon as the metal could have completed a rebound from the December 2011 low of $1,955.75 and is steady on a short-term downtrend.
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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