Technicals | Sep 22 2011
By Rudi Filapek-Vandyck
The main weakness in technical analysis is that the view of the chartists doing all the reading and interpreting counts as much as what the price charts actually show. As such, the team of technical analysts at Barclays has been unpleasantly surprised by the further breakdown in the price of aluminium this week. Technical support was supposed to prove strong enough, yet it wasn't.
When technical support gives in, more weakness should follow and that has now become the view at Barclays. The analysts anticipate aluminium will drop to US$2200/t which is the next level of technical support.
Earlier, copper had already surprised in a negative sense and the team's expectation is that we will witness more price weakness for copper towards US$8220/t. Were this support to give in, the analysts believe there is "cloud support" near US$8100. The latter price level should form a base under the copper price, predict the analysts.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
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