Business Recorder
LME aluminium three-month target at $1,505/T
Edited by : AL CIRCLE
1 min read
LME aluminium will fall to $1,505 per tonne, as it is riding on a powerful wave "C".
The wave "C" is the second downward leg of an "A-B-C" corrective wave cycle that started at the 2008 high of $3,380, and it could be mirroring the sharp wave "A" drop from $3,380 to the 2009 low of $1,279.
A Fibonacci projection analysis of the wave "C" target points to $1,505, the 61.8 percent level, based on the length of the wave "A" and the peak of the wave "B" at $2,803.
The metal needs to clear a support at $1,828, the wave "b" trough, before rushing towards $1,505.
The fall from $2,803 has not been linear enough to characterize the wave "C", signaling the following move could speed up, and the support at $1,828 may not trigger any decent rebound.
The wave "C" is the second downward leg of an "A-B-C" corrective wave cycle that started at the 2008 high of $3,380, and it could be mirroring the sharp wave "A" drop from $3,380 to the 2009 low of $1,279.
A Fibonacci projection analysis of the wave "C" target points to $1,505, the 61.8 percent level, based on the length of the wave "A" and the peak of the wave "B" at $2,803.
The metal needs to clear a support at $1,828, the wave "b" trough, before rushing towards $1,505.
The fall from $2,803 has not been linear enough to characterize the wave "C", signaling the following move could speed up, and the support at $1,828 may not trigger any decent rebound.
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