Chart of the day: Fast and furious
Base metal futures prices in Shanghai and Dalian soared again last week, comfortably meeting some of our initial targets. Aluminium is one of these, hitting and hovering at our 14,000 yuan per tonne level. The massive spike high at 14,850 yuan (on very good volume) is a little worrying yet there would appear to be ample support for another move up, possibly before the end of the year. The contract is no longer overbought on the relative strength index, all aspects of the Ichimoku cloud system are strongly bullish, and momentum is as steadily bullish as it has been throughout the year. Observed volatility is as high as it was in 2011, suggesting one should prepare for big, sharp moves. Not for the fainthearted!
Nicole Elliott is a technical analyst