TECHNICALS — LME aluminium may retest resistance at $3,397 after shallow drop in Q4

For more Reuters technical analyses, please click TECH/C SINGAPORE, Sept 24 (Reuters) — LME aluminium may retest a resistance at $3,397 per metric ton in the fourth quarter, probably after a correction toward a support at $3,088 again. The resistance is identified as the 50% projection level of a wave C from $2090, which may either end around $3,705 or extend far above it. A retracement analysis on the downtrend from $4,071 to $2,081 reveals the 86.4% of $3,800 was almost reached. Despite the deep fall from $3,788, the uptrend is highly likely to extend to $4,071. Given that the metal has failed to break the resistance at $3,397, it may retrace toward $3,088 again. As long as the market hovers above $3,088, the uptrend will be considered intact within the channel. A break above $3,397 could both open the way toward $3,705 and suggest a continuation of the uptrend. On the daily chart, a projection analysis on a wave c from $3,368 marks a fine-tuned target of $3,152, the 100% level, as the metal is about to break the support at $3,235, the 61.8% level. A break below $3,152 could be followed by a drop into $3,045-$3,070 range while a break above $3,317 would signal the continuation of