Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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December 2018 | Base Metals

Technical analysis: Chart configurations have improved

With prices rallying in recent days, the technical configuration of most base metals has improved. We wait to see if buying momentum can be maintained.

The LME three-month aluminium price surged as high as $1,996 per tonne, just shy of taking out the psychological price level at $2,000 per tonne, on Monday December 3. Its technical configuration has turned rather positive, with the price edging above the declining 20 DMA at $1,949 per tonne, and also breaking above the October 8 high DTL. The daily RSI and stochastic lines have started to turn higher too, supporting the current rebound momentum. That said, sellers are never far away. A negative close below the 20 DMA could nullify most of the latest positive development and put the price under selling pressure again. Still, we remain mindful that aluminium has been looking a tad oversold and as such, we will give the buying momentum more time to prove itself.



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