SINGAPORE: LME aluminium may break a key support at $1,767 per tonne and fall towards the next support at $1,710 this week, as suggested by its wave pattern and a projection analysis.
The metal is riding on a wave C from $1,951. This wave was disrupted by a support at $1,767, its 38.2% projection level. Based on a flag pattern, the wave C could travel to $1,470.
However, it is not very clear if the metal would bounce towards $1,837 first before falling again. A break above $1,837 could lead to a gain into the range of $1,881-$1,951, while a break below $1,767 will confirm the continuation of the downtrend towards $1,710.
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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