Technical Forecast for Aluminium

Aluminium last week pierced the 3 year trend line at 1827 but bounced quickly from 1818 & we expected this to mark the low for the 2 month sell off. We have seen some weakness at the start of this week as expected to 1873 & below here today good support at 1860. However we cannot rule out a break lower to 1850/41 & possibly even a test of the 1818 lows. This should offer a very good buying opportunity once again.

 

The daily picture is becoming more positive so eventually we should see a push higher, if not today then perhaps tomorrow. We should struggle at 1902 resistance but a could retest 1926/28 above. A break higher looks unlikely today but if seen could take us to 1953/58. Watch for a high for the day & if trying shorts use a stop above the gap at 1962 & look for 1996 next target.