Before we went to press Thursday aluminium had extended Wednesday's gains as far as 2758, as base metals received a boost from improving equities, precious and oil prices. However, progress halted for most of the LME complex in the morning, with aluminium struggling to overcome resistance emanating from the 100- and 30-day moving averages. Values pulled back to 2722 and bounced around after that, with returning confidence not yet turning into exuberance.
Nearby spreads and forwards were little-changed, while the 90+% dominant long in the LME's WC warrant banding report remained in situ.
Enthusiasm appeared to wane further on Friday morning, with volumes well down on preceding sessions and prices hovering sideways in a narrow band. So far, aluminium had mustered 928 lots and strayed no further than $10 on either side of the opening trade at 2735. Apart from established overhead selling dealers were watching copper, while the whole market awaited this afternoon's US non-farm payroll data for clues to the next move. While aluminium was back in its established range, trading strategists Cliff Green Consultancy suggested that the market's week-old down-leg looked complete. In their latest daily report, the technicians advocated buying below current levels, looking for the market to challenge nearby resistance c. 2800/20.
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