Bloomberg reported that aluminum prices down 6.5% this year probably will extend the slump to the lowest since October on the London Metal Exchange.

Mr Matt McKinney analyst at Zaner Group LLC, after touching a low of USD 1,934.85 per tonne on March 11, prices jumped 2 days later to USD 1,996.25 creating a so called bear flag pattern that signals a drop by the end of this month to USD 1,887, the lowest since October 29. A bear flag, named for its resemblance to an inverted flag on a pole, occurs when a security is declining, pauses and consolidates and then continues its drop.

Mr McKinney said that “There was a valiant effort to get prices back up, but sellers came in heavy the past few days. There’s considerable momentum to the downside now. It’s a convincing bear flag.”

Aluminum for delivery in 3 months rose 0.1% on the LME, paring the metal’s decline in March to 3.3%. Prices tumbled 4.1% in February the biggest monthly loss since October.