The prices aluminum rebound, producing a false break down of the support in the $1700 ares. Positive elements for a new reaction are:
– False break down of $1700 (Chart 1);
– On a weekly basis prices are creating a “bullish Engulfing” (this week’s candle body encloses last week’s candle body – Chart 2);
– Positive divergence of the MACD indicator suggesting a slowdown in the strength of the bearish trend since late 2018 (Chart 3);
– Rebounds of speculators’ net positions which grew by 3.07% in the week of February 28th (Chart 4).
Possible short-term targets set in the 1750$-1780$ area.
CHART 1 – FALSE BREAK WOWN OF $1700
CHART 2 – BULLISH ENGULFING
CHART3 – MACD POSITIVE DIVERGENCE
CHART 4 – INCREASE OF THE SPECULATOR’S NET POSITIONS
