Aluminium (LME) shot up to a thirteen-year high at 3000 before giving back some of its recent gains. Short-term consolidation back towards the 2803.00 2011 high is on the cards, according to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.
Medium-term bullish bias while above the 2516 August low
“Last week, Aluminium overshot the 2011 peak at 2803 and rallied all the way to psychological resistance at 3000 this week before consolidating below this level. Further short-term consolidation back towards the 2803 2011 high is on the cards.
“Only a slip and daily chart close below the two-month uptrend line at 2779.50 could potentially lead to the May and July highs at 2642.00/2603.00 being revisited.”
“A rise and daily chart close above the 3000.00 mark would engage the March 2008 high at 3255.00 and also the May 2006 peak at 3310.00. Further up sits the July 2008 high at 3380.10.
“We will retain our medium-term bullish forecast while the contract remains above the 2516.00 August low. Further minor support comes in between the mid-June high at 2505.00 and the four-month support line at 2473.19.”