LME aluminium may revisit Jan 3 low of $1,785.50

SINGAPORE: LME aluminium may revisit its Jan. 3 low of $1,785.50 per tonne this week, as it has broken a support at $1,851.

The support is identified as the 7 percent retracement on a downtrend from $2,718 to $1,785.50. After a consolidation above this support for more than two months, aluminium eventually overcomes this barrier.

There will be no support to hold the fall until aluminium reaches $1,785.50. The question is how much the metal could drop once the support at $1,785.50 is broken? Wave pattern suggests the metal is riding on a wave C, which could travel to $1,710, its 50 percent projection level.