SINGAPORE, June 22 (Reuters) – LME aluminium may bounce to $1,885 per tonne, as it failed to break a support zone of $1,862.50-$1,871.
The zone is formed by the May 10 low and the 123.6 percent Fibonacci projection level of a downward wave c, the third wave of a bigger wave C from the May 26 high of $1,968.
The recent part of the wave C has been confined within a falling channel. With this wave having approached the channel line, the chance of a bounce towards the upper line has been significantly increased.
A further slide from the current level may be limited to $1,862.50.