Aluminum Alloy traded at the London Metals Exchange (LME.AA) finished with a price of $2,650 per ton, down 0.4% for the day. It appears there is a seasonal tendency to LME.AA through the month of May.
Q: How has Aluminum Alloy traded at the LME performed after the close on May 6th?
A: According to the 13 previous occurrences of this event, LME.AA has shown a somewhat bearish edge that peaks 15 trading days after the event. Thus, the projected date for the peak of the bearish edge relative to the current event date (Tuesday, May 6, 2008) is Wednesday, May 28, 2008.
LME.AA declines in 77% of the cases (10 of 13) by an average of 2.1% relative to the close on the event date. The average of the three rallies is 1.3%. The overall return of the 13 cases is -1.4%, which, based on the close of LME.AA on the event date ($2,650), provides a target price of $2,612.9.
To view this event in SeasonalEdge, click here, or EventEdge, click here.
HYPERLINK "http://www.markethistory.com/staff/detail.html?s=rsoudan" Ryan Soudan is an analyst with MarketHistory.com.
