SINGAPORE, June 21 (Reuters) – LME aluminium may break a support at $1,885 per tonne and fall to the next support at $1,871, as it has completed a bounce from the June 16 low of $1,869.
These supports are identified respectively as the 100 percent and the 123.6 percent Fibonacci projection levels of a downward wave c, the third wave of a three-wave cycle from the May 26 high of $1,968. This wave is a part of a bigger wave C which may eventually travel to $1,849.
Over the past two weeks, the wave C has been unfolding within a falling channel. The drop from the June 20 high of $1,910 confirms the channel remains intact.
A break above $1,899 may lead to a gain limited to $1,908.