Aluminum (LME) is currently seen as the strongest industrial metal and is on the cusp of breaking to new YTD highs, as reported by the Credit Suisse analyst team.
Move below $2132 to signal a return to a trading range
“Aluminum completed a major base last year and is seen on the cusp of resolving its recent range to the upside with a break above the recent range high at $2301 needed to confirm. This should then lead to further upside potential toward $2375, the May 2018 high, before the even more important 78.6% retracement of the whole 2018/2020 downmove seen at $2448, which we would expect to cap at first. Beyond though in due course can expose $2718, the April 2018 high.”
“Only below the 63-day average at currently $2132 would let thoughts of a trading range re-emerge, which is not our base case.”
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