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Aluminium - 4 Hour Chart Looks Promising

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The 4 hour chart on Aluminium looks extremely positive.

 

It generally tends to be quite choppy in terms of volatility so I fully expect a pull back but if any of you were thinking of entering then do use 'Oscillators' to aid your decision making. 

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Hi  - what trade are you thinking about? Any charts or supportive fundamental news articles? It's good to explore these more niche markets which are under represented and under discussed on the Community.

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James, Copper has been boosted by Chinese imports which hit a 3.5 year high. Also there was a rumour which has been denied that China's top copper producer, state-owned Jiangxi Copper, had stopped production also supported prices this week. For me looking at the price action of Copper over the next few days and weeks will be key. The trade I am thinking about relates to the price breaking the 3.25 to 3.35 range. If it does and surpasses 3.40 price range then I would be looking to go long here on Copper.

 

Aluminium is slightly more tricky as there is suggestions that there could be surpluses in China who are the biggest producer and consumer of the metal. China is determined to shut illegal smelters, and cut production of aluminium by 30% in four provinces around Beijing during the winter, to curb pollution. I would be looking to enter a long position if not already long in Aluminium on any major pullback.

 

I look at charts to identify trends. I look at charts for moving averages, oscillators, etc. However I am not a chartist or somebody who goes into too much detail and technicality on charts. I allow the price action to determine whether I open the position long or short. If I go long and the trend reverses then my stop loss will come into play. If not then I will allow the position to run until the trend reverses. This will I should be able to maximise my profit and minimise my losses.

 

For commodity trades I do tend to establish if their is a fundamental reason behind the price action. I always feel that if there is then it just makes the trend stronger. For example, in recent months the fundamental story was there for both Lumber and Orange Juice due to the hurricane in Florida. However that trade is no longer on for Orange Juice though for Lumber there may have been a healthy pullback looking at the charts. 

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