Chart of the day: Aluminium outlook brightens
Price action in Shanghai aluminium futures has been quiet for most of this year, so not surprisingly both volume and historical volatility have dropped. This might be a good thing, giving both producers and consumers a chance to benefit from stable conditions. However, all aspects of this weekly chart continue to point to higher prices in the second half. Moving averages and the Ichimoku cloud are clearly bullish, the angle of the latter mirroring that of the mean regression – and well within one standard deviation of it. Both the lagging line and current prices have been propped up by the first Fibonacci retracement support and the blue line might benefit from rising candles over the next five weeks.
Nicole Elliott is a technical analyst