Chart of the day: Shanghai aluminium shines

PUBLISHED : Monday, 25 August, 2014, 3:34am
UPDATED : Monday, 25 August, 2014, 3:34am

Shanghai aluminium has its strongest weekly close since October last year. Rolling third-month futures rose after three weeks of consolidation, with weekly volume above average and open interest rising. Meanwhile, talks between Rusal, the world's largest aluminium firm, and the world's biggest buyers - the Japanese - started with a record premium over London Metal Exchange prices of US$460 per tonne for the fourth quarter of this year. These are benchmark talks for Asian markets and underline strong demand. A rally from current levels to 15,000 yuan (HK$18,880), a 38 per cent Fibonacci retracement from last year's high, would not be a surprise.

Nicole Elliott is a technical analyst