Aluminium (LME) trades in three year highs at 2603.00. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the metal to surpass the 2661.00/2710.00 region and extend its advance.
“Last week, aluminium surged higher and sliced straight through the 2008-2021 resistance line at 2508.62 to then advance to its current May high at 2603.00. Above it the February 2006 and November 2007 highs can be found at 2661.00/2678.10.”
“If the 2661.00/2678.10 area is exceeded, the July 2006 high and April 2018 peak at 2710.00/2718.00 would be next in line. Further up lies the May 2011 peak at 2803.00.”
“Immediate upside pressure should be maintained while the contract remains above the one month support line at 2463.64 and the late April low at 2392.50. Below these levels the February-to-May uptrend line can be spotted at 2362.17.”
