Bloomberg
Aluminum’s gain halted at about $2,000
Edited by : AL CIRCLE
2 min read
Aluminum may rise for a third week next week in London, though gains are likely to be capped at about $2,000 a metric ton, according to technical analysis by Barclays Plc.
The chart shows prices yesterday climbed above $1,928 a ton, the top of the range that starts with the April 16 session. The 50 percent retracement of the drop from Feb. 15 to April 15, a level singled out in so-called Fibonacci analysis, and the 200-day moving average lie ahead, forming resistance, said Lynnden Branigan, a technical analyst at Barclays.
“Given the corrective upticks in the base complex, aluminum could be dragged higher over the next week,” Branigan said in an e-mail yesterday. “The break above $1,928 is expected to be capped in the $2,000 area.”
The lightweight metal, used in products from soda cans to aircraft, touched the lowest price since October 2009 on April 15 at $1,818 a ton. Aluminum for delivery in three months traded at $1,931.75 at 6:55 a.m. today on the London Metal Exchange, down 6.8 percent this year.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a new high or low.
The chart shows prices yesterday climbed above $1,928 a ton, the top of the range that starts with the April 16 session. The 50 percent retracement of the drop from Feb. 15 to April 15, a level singled out in so-called Fibonacci analysis, and the 200-day moving average lie ahead, forming resistance, said Lynnden Branigan, a technical analyst at Barclays.
“Given the corrective upticks in the base complex, aluminum could be dragged higher over the next week,” Branigan said in an e-mail yesterday. “The break above $1,928 is expected to be capped in the $2,000 area.”
The lightweight metal, used in products from soda cans to aircraft, touched the lowest price since October 2009 on April 15 at $1,818 a ton. Aluminum for delivery in three months traded at $1,931.75 at 6:55 a.m. today on the London Metal Exchange, down 6.8 percent this year.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a new high or low.
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