June 2009 | Base Metals
Pointing lower: Techincal analysis
Technical analysis of the base metals
Aluminium: The pullback we were waiting for started last Monday, with our short signal triggered on the opening on Tuesday, but the weakness was short-lived. Prices dipped to $1,580/tonne on Wednesday, before rebounding later that day, which was enough to see the stochastics cross higher again, thus giving us a quick exit and buying opportunity, around $1,630/tonne. It now looks as though prices have found support and are attempting to rally again, supported by rising RSI, stochastics and Bollinger bands. We would run with the long, but be ready to reverse again when the stochastics cross lower. We are nervous longs here, but this run up may well provide a better selling opportunity in the days ahead. Given the expanding Bollinger bands, a pullback could be quite aggressive, when it gets going.
Aluminium Alloys
We stayed...
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