Aluminium prices continued higher this week. The latest positioning data shows that money managers increased their bullish exposure to fresh 2017 highs. With price continuing higher, trend following managers are likely to increase their exposure.
Remaining short positions also suggest the risk of a short-covering rally in price. Increasing tightness in available inventories as well as strong physical premiums, supported by robust demand from money managers, is likely to keep aluminium prices supported. The trend remains firmly bullish in aluminium which is only likely to see occasional shallow retracements lower on profit taking.
The rally in aluminium has seen price move up to challenge key resistance at the 2014 and mid-2015 lows. This is a key level for Aluminium and a sustained break here suggests a reversal of the bearish trend from 2011. Key support comes in at the mid-2016 highs around 2.786
Read more: https://www.orbex.com/blog/2017/04/weekly-commodities-wrap-aluminium-longs-at-record-highs/