SINGAPORE: LME aluminium may retest a support at $1,791 per tonne this week, with a good chance of breaking below this level and falling towards the July 2 low of $1,771.50.
The support is identified as the 61.8% retracement of the uptrend from $1,745 to $1,866. The trend has reversed, as suggested by its three-wave mode and the depth of the fall from $1,866.
The bounce triggered by the support at $1,791 is indeed a pullback towards a rising trendline. Resistance is at $1,820, a break above which could lead to a gain into the range of $1,837-$1,848.
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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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