Technical forecast for Aluminium

alu

Aluminium last week pierced the 3 year trend line at 1827 but bounced quickly from 1818 & we expected this to mark the low for the 2 month sell off. We could see some weakness at the start of this week to 1873 then good support at 1860. However we cannot rule out a break lower to 1850/41 & possibly even a test of the 1818 lows. This should offer a very good buying opportunity once again.

1902 is our first resistance & we should struggle here but a move higher could retest 1926/28. A break higher looks unlikely today but if seen could take us to 1953/58. Watch for a high for the day & if trying shorts use a stop above the gap at 1962 & look for 1996 next target.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More