SINGAPORE: LME aluminium may test a resistance at $2,562 per tonne this week, as it could have completed a downtrend around a key support at $2,360.
The support is identified as the 161.8% projection level of a downtrend from $3,742.
It is strengthened by a similar one at $2,458, the 61.8% retracement of the uptrend from $1,460 to $4,073.50.
Five waves make up the downtrend from $4,073.50.
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The wave “e” could hardly extend below $2,360, as suggested by the bullish divergence on the daily relative strength index.
A break below $2,360 may trigger a drop to $2,236.