We’ve been observing Aluminum for some time now and also included it in our Three Charts for the Week post, and the move seems to have picked up the pace.
Aluminum has been leading the base metals space for a while since Copper took a back seat, and we’re now seeing the follow-through of that action in the price breakout.
With the rise in US dollar and bond yields, equities and commodities decided it was a good time to take a breather. When base metals proceeded to move back below their breakout levels three weeks ago, Aluminum was the lone name to have held its ground. The indicator too continues to hold on to the bullish momentum levels alluding to the strength in the move.
After the price broke out above the level of 166, the next level where an overhead supply could be seen was 177. The price has now moved past the resistance of 177 as well and looks ready for a dash towards 189.
We are bullish above the level of 177 with a target near 189.
Click on chart to enlarge view.
While the other base metals have started their recovery process and are moving towards former resistances, Aluminum has been taking the lead over the past few weeks. Going by the current move, 189 in Aluminum seems just around the corner!
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