Bloomberg reported that tin may rally about 12 percent this quarter to USD 27,300 a tonne, the highest price since August 2011.
Mr Jeffrey Zhang, Hong Kong based head of Asian research said that Trading Central SA, the target represents on Fibonacci charts the 61.8% retracement of the decline from the April 2011 high to the July 2012 low. In the short term, tin will probably advance to between USD 24,930 and USD 26,000 in one or two weeks.
Mr Zhang said that “The price has already broken above a long-term declining trend line in place since April 2011 and currently remains on the upside within its bullish channel. The 20 day moving average plays well as a support role, and should continue to push the price higher.”
Tin for delivery in three months jumped as much as 4.7% to USD 24,510 a tonne on the London Metal Exchange yesterday, the highest level since February. It gained 22% last year, the best performing main industrial metal on the LME. The price fell 0.2% to USD 24,400.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low.
Source:
http://www.steelguru.com/metals_news/Tin_seen_advancing_to_USD_27300_on_Fibonacci/297166.html
