LME aluminium (MAL3=LX) may test a resistance at $3,149 per metric ton this week, a break above could trigger a gain to $3,205.
The metal has stabilised around a support zone of $3,021-$3,061 and started a bounce. The stabilisation, along with the bullish divergence on the daily RSI, suggests a completion of the wave c from $3,563.
Five small waves make up this wave c. The market may bounce toward the peak of the wave iv around $3,205. A further fall from the current level may be limited to $3,021.
* The analysis is published once a week on Monday.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult their own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.