Chart of the day: Aluminium shines
A month ago, we pointed out that aluminium futures in Shanghai were on the way up again. Surely enough, they rallied to the mean regression line and continued rising this week to break through it towards one standard deviation above the mean as forecast. With a bit of luck, we should see a retest of November’s massive surge at 14,850 yuan per tonne as all aspects of the weekly Ichimoku cloud chart are decidedly bullish. Note that this is very close to 2014’s high at the psychological level of 15,000 yuan, a level that is unlikely to give way on a first attempt and so should be approached with great caution.
Nicole Elliott is a technical analyst