Technical Forecast for Aluminium for 19th May 2013
Aluminium did push above 1860 but only as far as 1866. Last week’s performance was poor, unable to rally as we hover near April & May lows & there is a risk we break lower this week. Failure to hold above 1850/45 today risks a slide towards Wednesday’s low at 1821 & possibly May lows at 1809. A break lower this week should target 1778/76.
A push through 1860 is more positive but we then need to tackle Friday’s high of 1866 in order to reach for resistance at 1880/85. This could hold the bounce so a high for the day is possible but shorts need stops above 1895.