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Aluminum looks quite bearish

Olymp Trade

Aluminum has updated a new 2 year low. COMEX futures ended at $1765. After that, a local upward correction began, but there is hardly any reason for optimism. The change of the trend is not possible before the breakout of the $1830 level and the trend line of the bearish trend, which has lasted since mid-March. Locally, the price can go up to this mark ($1830). However, with a higher probability, the current downtrend will continue.

China, the main producer and consumer of aluminum, will soon introduce new emission standards for cars and trucks. They will come into force on July 1. However, the manufacturers of aluminum products are pessimistic about June as well. The tendency to reduce orders for aluminum extrusion products for the Chinese automotive industry has already appeared this month. Car manufacturers reduced production and began to get rid of the stocks of old models. Sales and production of cars in China have been declining since the second half of 2018, thus reducing the demand for metal.

Olymp Trade Review

Source: https://olymptrade.com/
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