Bloomberg
Aluminum May Extend Advance to $2,295 After Breakout: Technical Analysis
Edited by : AL CIRCLE
1 min read
Aluminum, the second best-performing metal on the London Metal Exchange this year, may extend a rally to $2,295 per ton in the next few weeks, according to technical analysis by Commerzbank AG.
“Aluminum has maintained its break higher and continues to correct higher,” Karen Jones, a Commerzbank technical analyst in London, wrote in a Jan. 18 report. The erosion of the December high of $2,168 suggests an extension of the rally, she said in a telephone interview today.
Aluminum for delivery in three months on the LME rose as much as 1.3 percent to $2,233 a ton, the highest price since Oct. 31, and traded at $2,228 a ton by 6:47 p.m. Seoul time.
“We believe that the market has some unfinished business on the topside near term and we would allow for an extension of the rally to the $2,278/95 resistance,” Jones wrote. Resistance refers to levels where sell orders may be clustered.
Technical analysts watch for patterns on daily charts, such as moving averages and resistance levels, for clues to price direction.
“Aluminum has maintained its break higher and continues to correct higher,” Karen Jones, a Commerzbank technical analyst in London, wrote in a Jan. 18 report. The erosion of the December high of $2,168 suggests an extension of the rally, she said in a telephone interview today.
Aluminum for delivery in three months on the LME rose as much as 1.3 percent to $2,233 a ton, the highest price since Oct. 31, and traded at $2,228 a ton by 6:47 p.m. Seoul time.
“We believe that the market has some unfinished business on the topside near term and we would allow for an extension of the rally to the $2,278/95 resistance,” Jones wrote. Resistance refers to levels where sell orders may be clustered.
Technical analysts watch for patterns on daily charts, such as moving averages and resistance levels, for clues to price direction.
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