LME aluminium to drop to $1,840

LME aluminium is expected to drop to $1,840 per tonne, as indicated by a falling channel and a Fibonacci retracement analysis.

After struggling for several days around the upper channel line, aluminium eventually resumed its drop towards the lower channel line, which points $1,840, the 61.8 percent Fibonacci retracement on the rise from the Aug. 7 low of $1,773.25 to the Aug. 19 high of $1,949.

Resistance is at $1,869, the 76.4 percent projection level of a downward wave c, a break above which may trigger a limited gain to $1,882, the 38.2 percent retracement.

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