30 MAY 2014www.moneycontrol.com
LME Aluminium likely to rally towards $2100/tonne: Nbang
Edited by : AL CIRCLE
2 min read
LME Aluminium prices have been continuously trading in a falling wedge since last one and half years, and recently it witnessed a falling wedge breakout which indicates the short to medium term outlook for the metal remains positive.
We can see a minimum three upper resistance and three lower supports to the trend line making lower highs and lower lows. It confirms that the upper resistance line and lower support line converge to form a cone as the pattern matures.
Bullish confirmation of a pattern confirmed on last week of March 2014 with broken out of immediate resistance of $ 1790/tonne and the metal prices sharply hit the immediate resistance level of $1900/tonne. We can see a surge on volume when the falling wedge broken out and after we seen some correction to test the immediate support level of $1750/tonne.
RSI too shows uptrend and takes support to the upward trend line indicates upside trend is intact.
Outlook: Since the “Falling Wedge Reversal” pattern found in LME Aluminium prices, we believe that at least next one and half quarter will be positive for the metal and it is likely to hit the upside level of $2100/ tonne and $2200/tonne in the coming months. The view remains firmly in place as long as prices do not close below $1700/tonne on weekly closing basis.
We can see a minimum three upper resistance and three lower supports to the trend line making lower highs and lower lows. It confirms that the upper resistance line and lower support line converge to form a cone as the pattern matures.
Bullish confirmation of a pattern confirmed on last week of March 2014 with broken out of immediate resistance of $ 1790/tonne and the metal prices sharply hit the immediate resistance level of $1900/tonne. We can see a surge on volume when the falling wedge broken out and after we seen some correction to test the immediate support level of $1750/tonne.
RSI too shows uptrend and takes support to the upward trend line indicates upside trend is intact.
Outlook: Since the “Falling Wedge Reversal” pattern found in LME Aluminium prices, we believe that at least next one and half quarter will be positive for the metal and it is likely to hit the upside level of $2100/ tonne and $2200/tonne in the coming months. The view remains firmly in place as long as prices do not close below $1700/tonne on weekly closing basis.
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