Aluminum (LME) remains capped by its 55-day moving average (DMA), currently seen at $2,355, and is establishing fresh YTD lows. Strategists at Credit Suisse stay biased towards further weakness.
Aluminum remains in a clear downtrend
“We identify the next significant medium-term support at the 78.6% retracement of the 2020/2022 uptrend and key psychological mark at $2,015/2,000. In case this long-term support area would break as well, we then identify next key supports at the $1,945 January 2021 low and then the October 2020 low at $1,725.”
“Above the 55-DMA, currently at $2,355, would stabilize Aluminum in the short-term, but above the 200-DMA, currently seen at $2,830, is needed for a more profound medium-to long-term stabilization, which is not our base case.”