SINGAPORE: LME aluminium still targets $1,710 this week, as it has broken a key support at $1,767 per tonne.
The support is identified as the 38.2pc projection level of a wave C from $1,951.
The next support will be at $1,710.
The wave C is capable of travelling to $1,470, which is indicated by a flag as well.
Unless the metal climbs above $1,767 and hovers above it, the target at $1,710 looks like an easy prey to bears.
A rise above the June 7 high of $1,781.50 could signal the break below $1,767 was false, and the target at $1,710 will be aborted.
The analysis is published once a week on Monday.
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Wang Tao is a Reuters market analyst for commodities and energy technicals.
The views expressed are his own.
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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