SINGAPORE: LME aluminium may consolidate further in the range of $1,964-$2,000 per tonne for one or two days before falling again.
The range is formed by the 38.2 percent and the 23.6 percent projection levels of a downward wave C from $2,059. The consolidation may consist of three waves. So far, only the first wave labeled (a) has unfolded.
The current wave (b) may end around $1,964, to be then reversed by the wave (c). A break below $1,964 could confirm the continuation of the downtrend towards $1,934 while a break above $2,000 could lead to a gain into the range of $2,023-$2,059.
The wave C is capable of traveling to $1,905. Eventually, the metal will fall below the consolidation range.
The analysis is based on delayed data, prediction may be affected.
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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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