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

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January 2019 | Base Metals

Technical analysis: Trying to rebound

Rebounds are underway after many base metals hit fresh lows in late December and early January, but there is plenty of resistance to erode and, as yet, not an abundance of buying pressure.

The three-month LME aluminium price has staged a modest rebound from a two-year low of $1,785.50 per tonne on January 3. The stochastic momentum indicators have crossed higher and the RSI has recovered to 44 from an oversold 21 at last week’s low. Further support is at the recent double-bottom around $1,786 per tonne. But prices face strong overhead resistance. The 20 DMA, which continues to trend lower, stands at $1,900 per tonne ahead of the long-term UTL formed by the November 2015/September 2016 lows. The December 3 high at $1,996 per tonne coincides with the 100 DMA.



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