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

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February 2020 | Base Metals


Technical analysis: Trying to base-build and even rebound


After their steep falls the base metals have run into dip buying which is helping to establish support, build bases and even attempt rebound. Volatility is likely to remain high in the short-term.

Aluminium 

The long lower wick on the daily candle on Friday January 31 suggests that the LME three-month aluminium price has run into some dip-buying support near the lows from Q2 2019 and around the $1,700 per tonne level. Prices failed to produce a positive close last week, and dipped below this landmark level on Monday this week, but there still may be some short-term respite from the selling given that the daily RSI and stochastic lines have started to look short-term oversold. As such, we envisage a technical rebound to emerge in the coming days though we remain mindful that the 20 DMA has started to turn lower. A bearish cross-over between the 20 DMA and the 200 and 50 DMAs could give sellers the advantage to retake control of aluminium again. Copper The LME three-month copper price has...

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