The aluminum price is correcting in a wide range of the H4 timeframe.
Nonferrous metals closed yesterday's trading with growth. The U.S. consumer price index for March was below the forecasted level. The market is assessing the probability of the stopping the rate hike by the Fed after the May meeting. Metals are getting support from the drop in the dollar index.
Aluminum rose by 0.91%. The supply of aluminum in China's domestic market has increased slightly, while demand for recycling is slowly recovering. In general, there is a balance of positive and negative factors in the aluminum market. This can maintain aluminum prices at current levels.
Information from the London Stock Exchange on aluminum reserves in storages reduced the price of the metal until the inflation statistics from the U.S. were published.
The percentage of Russian aluminum reserves in the London Metal Exchange (LME) stocks increased from 41% to 53% (220,575 tons), according to the official website.
According to competent sources, in recent months commodity trader Glencore has placed thousands tons of aluminum produced by the Russian company Rusal in LME warehouses in Asia.
In February, Glencore claimed that its contract with Rusal expires in the second half of 2024.
Total aluminum reserves at the LME have increased by 85% to 512,725 tons since the beginning of September.
Thousands tons of aluminum in LME storages resulted in the increased supply of aluminum on the market, and, consequently, in the decrease of aluminum prices. This information was creating a downtrend.
Inflation statistics brought aluminum prices out of a downtrend on the H1 timeframe.
On the H4 timeframe the curve of the Relative Strength Index indicator (standard values) has moved out of the oversold zone, indicating the beginning of the formation of an uptrend.
In terms of wave analysis on the H4 chart, the price is in the formation of the third ascending wave. The third wave will show the current impulse of the movement only after breaking through the top of the first wave, i.e. there is a good upside potential to the resistance 2433.
Signal:
The short-term prospects for aluminum - buying.
The target is at the level of 2433.
Part of the profit should be fixed near the level of 2390.
The stop-loss is at the level of 2300.
Bullish trend has a short-term character, so the volume of trade should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
