Aluminum May Extend Losses on Bear Flag: Technical Analysis
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Aluminum prices, down 6.5 percent this year, probably will extend the slump to the lowest since October on the London Metal Exchange, according to technical analysis by Matt McKinney at Zaner Group LLC.
After touching a low of $1,934.85 a metric ton on March 11, prices jumped two days later to $1,996.25, creating a so-called bear flag pattern that signals a drop by the end of this month to $1,887, the lowest since Oct. 29, McKinney said. A bear flag, named for its resemblance to an inverted flag on a pole, occurs when a security is declining, pauses and consolidates, and then continues its drop.