Aluminum (LME) remains in a clear downtrend. Economists at Credit Suisse expect fresh year-to-date lows during the fourth quarter.

Break above $2,820 needed for a profound stabilization

“We stay biased towards further weakness during Q4 and we identify the next significant medium-term support at the 78.6% retracement of the 2020/2022 uptrend and key psychological mark at $2,015/00. Below there we would identify next medium-term supports at $1,945 and then $1,725, before the crucial 2020 low at $1,455.”

“A clear rise above the 55-day average, currently at $2,344, would stabilize in the short-term, but above the 200-day average, currently seen at $2,820, is needed for a more profound stabilization, which is not our base case.”