Technical Forecast for Aluminium
Aluminium last week pierced the 3 year trend line at 1827 but bounced quickly from 1818 & we expected this to mark the low for the 2 month sell off. We held on to 1873 support yesterday but we did struggle at 1902 resistance. If we can hold on to 1885 look for another go at 1902 with a push through 1910 then opening the door to 1926/28. A break higher looks unlikely today but if seen could take us to 1953/58. Watch for a high for the day & if trying shorts use a stop above the gap at 1962 & look for 1996 next target.
Below 1885 we should see 1873 trade then a break of the week’s low so far at 1869 targets good support at 1860. However we cannot rule out a break lower to 1850/41 & possibly even a test of the 1818 lows. This should offer a good buying opportunity once again.
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