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

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November 2019 | Base Metals


Technical analysis: Mostly looking for consolidation


In the short term, our technical analysis mostly points to the risk of orderly corrections or consolidation with a downward bias in the coming weeks. But that is not to say that uptrends cannot then resume.

Aluminium 

The LME three-month aluminium price attracted strong follow-through buying on Monday November 4 and edged closer to the 2019 high DTL. The light metal breached above the psychological price level of $1,800 per tonne and closed solidly higher on Monday. In the very short term, it still has room on the upside, but is fast approaching key overhead technical resistance of the 200 DMA, currently flattening out at $1,818 per tonne. Both the daily RSI and stochastic lines are looking a tad overbought and we would not be surprised if technical sellers start to retake control of the complex. Copper The LME three-month copper price has found some support at the 20 DMA ($5,834 per tonne), reflective of positive sentiment. LME copper is also above its DTL from the 2019 high (presently around $5,650 per tonne), suggesting the breakout remains intact. The bullish crossover pattern, whereby the...

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