Chart of the day: Aluminium acting well
The price of front-month aluminium futures in Shanghai continues to trend neatly higher. Not only is it moving at a sustainable roughly 45-degree angle across the page, but also holding within one standard deviation around the mean regression. The weekly Ichimoku cloud is supportive, as are the moving averages, and the lagging line has been propped up by the upper standard deviation band. Throughout March, the Fibonacci 38 per cent retracement support held the downside, setting off this week’s break through the mean regression line. Expect some hesitation around this point for another week or two, but after that, we will be pencilling in a rally towards the upper one standard deviation line.
Nicole Elliott is a technical analyst