20 MAY 2016www.brecorder.com
LME aluminium to consolidate in $1,529-$1,559 range
Edited by : AL CIRCLE
1 min read
LME aluminium may consolidate in a range of $1,529-$1,559 per tonne for one or a few days before rising again.
The bounce from the May 13 low of $1,531 seems to be incomplete. However, the metal may have not accumulated enough bullish momentum to bounce beyond the resistance at $1,559, the 50 percent Fibonacci retracement rise from the Nov. 23, 2015 low of $1,432.50 to the April 29 high of $1,686.
The chance of a break below $1,529 could be low, as the support at $1,529 has been proved to be strong, successfully holding the drop for a few days.
A Fibonacci retracement analysis on the fall from $1,686 to $1,531 reveals a resistance at $1,568, the 23.6 percent level, a break above which could lead to a gain to $1,590, the 38.2 percent level.
The bounce from the May 13 low of $1,531 seems to be incomplete. However, the metal may have not accumulated enough bullish momentum to bounce beyond the resistance at $1,559, the 50 percent Fibonacci retracement rise from the Nov. 23, 2015 low of $1,432.50 to the April 29 high of $1,686.
The chance of a break below $1,529 could be low, as the support at $1,529 has been proved to be strong, successfully holding the drop for a few days.
A Fibonacci retracement analysis on the fall from $1,686 to $1,531 reveals a resistance at $1,568, the 23.6 percent level, a break above which could lead to a gain to $1,590, the 38.2 percent level.
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