LME aluminium three-month target at $1,505/T
The wave "C" is the second downward leg of an "A-B-C" corrective wave cycle that started at the 2008 high of $3,380, and it could be mirroring the sharp wave "A" drop from $3,380 to the 2009 low of $1,279. A Fibonacci projection analysis of the wave "C" target points to $1,505, the 61.8 percent level, based on the length of the wave "A" and the peak of the wave "B" at $2,803. The metal needs to clear a support at $1,828, the wave "b" trough, before rushing towards $1,505. The fall from $2,803 has not been linear enough to characterize the wave "C", signaling the following move could speed up, and the support at $1,828 may not trigger any decent rebound. 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.