Technical Analysis of Financial Markets

Thursday, June 05, 2008


Having rallied over 40%, the last three month period has seen aluminum prices consolidating into a bullish Symmetrical Triangle formation as part of an Elliot Wave pattern. The Elliott Wave Triangle approach designates five sub-waves of a triangle as A, B, C, D and E developing in sequence as a tightening coil pattern. Sub-wave E marks the completion of a fourth wave of an overall five-wave impulsive Elliot pattern; at which point, the final fifth wave of the formation should see price action breakout to new highs. Stop-loss close below sub-wave E. The ETFS Aluminium Exchange-Traded Commodity (ETC) tracks the DJ-AIG Aluminum Sub-Index and is listed on the London Stock Exchange as ALUM.

Dow aluminum component, Alcoa (AA), is currently completing a b-wave of an impulsive a-b-c wave formation which may see wave-c target YTD highs:

1 comment:

j. / marketfolly said...

alum still forming that great bull flag. AA had a great run for a few days then that downgrade really took the steam out of it. think its just an "oh shit we missed the boat, better downgrade it so we can get in" type thing? that's the first thing that came to mind haha.

keep up the great finds, linked this post on my blog, hope ya don't mind.