Aluminium (LME) has seen a sharp decline lower from the $4,074 record high. Below $2,455, the metal is set to confirm a major top with downside potential seen toward $2,015/2,000, strategists at Credit Suisse report.

Potential large top threatening

“Aluminium remains below the key intersection of the 55 and 200-day averages, currently seen at $2,972/77. With the 55-DMA just crossing below the 200-DMA, this could mark a significant turn lower from here.” 

“A break of the 61.8% retracement of the whole 2020/2022 upmove at $2,455 would confirm a major top and we would then expect the industrial metal to continue its decline toward $2,305, the May 2021 low, and then the crucial 78.6% retracement and key psychological mark at $2,015/2,000, where we would expect at least a temporary floor again.”