Chart of the day: Aluminium ahoy!
Bang on time and bang on trend Shanghai aluminium futures have re-tested the horizontal chart level at 12,635 yuan per tonne and the top of the Andrews pitchfork. This happens to coincide with the top of the large triangle within which prices have been consolidating since mid-April. Helped up here by Fibonacci retracement support and the middle prong of the pitchfork, because all aspects of the Ichimoku cloud system are bullish we feel it is just a matter of time before we break higher. Note how the moving averages have nudged the candles higher and, if we hold above the black 26-week one, bullish momentum should increase and turn the MACD positive; on this volume could surge.
Nicole Elliott is a technical analyst