LME aluminium to test resistance at USD 1817
Post Date: 09 Sep 2013 Viewed: 344
Reuters reported that LME aluminium is expected to test a resistance at USD 1,817 per tonne a break above which will lead to a further gain to USD 1,837.
A five wave cycle starting from the August 22 high of USD 1,920 has completed at the Wednesday low of USD 1,785. The bottom of the failed fifth wave labelled v, along with the trough of preceding wave iii, has formed a tinny double bottom.
A Fibonacci retracement analysis on the cycle has revealed the immediate resistance is at USD 1,817, the 23.6% level which blocks the way towards the 38.2% retracement at USD 1,837.
Support is at USD 1,785, a fall below which will confirm the continuation of the preceding downtrend towards USD 1,760.