18 FEBRUARY 2016Business Recorder
LME aluminium may retrace to $1,515
Edited by : AL CIRCLE
1 min read
LME aluminium may retrace to a support at $1,515 per tonne, as it failed to break a trendline resistance around $1,540.
The trendline is a part of a triangle, which suggests that aluminium may retrace towards the lower trendline support around $1,490. Wave pattern indicates the metal is riding on a wave C, which has only briefly extended above a resistance at $1,530, its 61.8 percent Fibonacci projection level.
Even if this wave is capable of travelling to $1,581, the 100 percent projection level, it may be disrupted by a correction to the 50 percent level at $1,515. A break above $1,540 could lead to a gain to $1,549, the 76.4 percent level.
The trendline is a part of a triangle, which suggests that aluminium may retrace towards the lower trendline support around $1,490. Wave pattern indicates the metal is riding on a wave C, which has only briefly extended above a resistance at $1,530, its 61.8 percent Fibonacci projection level.
Even if this wave is capable of travelling to $1,581, the 100 percent projection level, it may be disrupted by a correction to the 50 percent level at $1,515. A break above $1,540 could lead to a gain to $1,549, the 76.4 percent level.
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