LME aluminium may fall towards $1,710

SINGAPORE: LME aluminium may break a support at $1,785.50 per tonne this week and fall towards the next support at $1,710, as suggested by its wave pattern and a projection analysis.

The support is provided by the Jan. 3 low. The metal is riding on a wave C from $1,951, which is expected to travel into a range of $1,470-$1,653. A realistic target would be $1,710.

Resistance is at $1,851, the 7 percent retracement of the downtrend from $2,718 to $1,785.50. A break above $1,851 could lead to a gain to $1,922.