Aluminium - on track for its third consecutive week in the green

Taking a look at Aluminium after the price of the metal is trying to break above the resistance of the 200-day moving average. With this week currently underway to finish in the green for the third consecutive week, in theory, a weekly close above the moving average would be a bullish indication and may see the commodity rise further heading into the September rate cut decision from the Federal Reserve. The recent optimism surrounding the rate cut has sparked a rally for the metal, with traders highly anticipating at least a cut of 25bps. The lowering of interest rates makes asset prices in US dollars cheaper for foreign investors, in turn, creating a higher demand which could drive the price higher. Currently, the price of the metal is trading at around $2,484 per metric tonne and is flat on the day. A close above the 200MA, or respectively $2,458, could then allow traders to target the next resistance level of $2,561 before focusing on the highs of the year ($2,800). Towards the downside, the previous key resistance of $2,399 should offer support in the near term followed by the support along the 50MA. The 50MA currently reads $2,347. Looking at the technical indicators, it seems like the MACD is trying to bottom and the RSI has edged towards bullish territory as it reads 54.