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MARKET TALK: LME Aluminum Eases; To Test $2,700 S/T -Trader

Wednesday, Mar 14, 2007
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LME 3-month aluminum down $24 on London PM kerb at $2,713/ton, eases along with rest of base metal complex as losses on equity markets raise investor risk aversion, fears of long liquidation by funds, say traders. Tokyo-based trader says 3-month contract to test immediate technical support at $2,700/ton; break below would put next support at $2,650, then $2,500/ton. Adds, $2,700 may not hold as drop in fund buying interest compounded by weak fundamental outlook for aluminum.

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