Aluminum had fallen from a high of $2870 in mid-July to $2375 in mid-September (down $495 in just 2 months’ time).
Currently a double-bottoming is forming, signaling that a possible reversal trend for this metal.
Evidences to supports the view that reversal trend is occurring:
a) Huge amount of cancelled warrants have been building up for the past few days, indicating rising demand for Aluminum at current price level.
b) Contango has shrank from 57 (early October) to 47 (mid-October), demand for physical has picked up.
Copper price has been weak lately, falling copper price may push aluminum price lower.
Aluminum price reaching $2450 - $2480 would be a good buying opportunity.
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