Aluminium (LME) has risen to the 38.2% Fibonacci retracement at 2081.62 which provoked failure and is to now consolidate below it for a few days, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, briefs.
Key quotes
“Aluminium has reached the 2071.00 September 2017 low as expected and so far risen to its current December high at 2080.00. Since this high has been accompanied by negative divergence on the daily RSI we expect the contract to now consolidate for several days. This is why we neutralised.
“Support around the 2000.00 mark is currently being revisited. Below it lies the 1966.00 late November low. While the contract remains above this level an overall bullish bias will be maintained. Below 1966.00 sits the 1935.00 November 9 high and further support around the 1872.50 October high and at the 1854.50 November 4 low.”
“Above 2080.00 lie the 2119.00/2119.50 August and September 2014 highs and also the 2147.50/2178.00 April 2018 low and the early and late August 2018 highs.”
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