Early signs of recovery are now visible in base metals

Early signs of recovery are now visible in base metals namely on Zinc and Aluminium as both probed their long-term support levels (respectively at 1950/37 and 1650/1600) and have confirmed a short-term inverted Head and Shoulder pattern. 

Zinc, hit the 5-year triangle lower boundary and 2014 lows where formed a weekly long-legged Doji. Near term, Zinc breached the downward channel which encompassed the past months sell-off and confirmed an inverted Head and Shoulder (confirmation level at 2030/28). The pattern's projected target is located at 2150, also the 50% retracement of the down move.

Aluminium confirmed an inverted Head and Shoulder at the crucial support of 1650/1600, the interception of the trend line support stretching back to 2010 and the down sloping channel in force since August 2014. Thus, a rebound is due to develop towards the potential for the pattern at 1750/1785 levels