COMEX_DL:ALI1!   Aluminum Futures
As geopolitical risks continue to cast a shadow over both equities and commodities, it is essential to recognize the crucial roles commodities play during times of conflict and the potential implications of any escalation on specific commodities.

Aluminum, valued for its malleability, corrosion resistance, and capacity to be intricately machined, finds application in the production of machinery and equipment parts, as well as in the aerospace and defense industries for aircraft components, missile structures, and military vehicles.

China holds the dual distinction of being the largest producer and consumer of aluminum, making China's trajectory a critical factor influencing the industrial metals market going forward.

With the Chinese industrial and manufacturing sector poised for a rebound, the expansion could potentially benefit industrial metals as a whole, such as copper and aluminum.

In terms of technical analysis, aluminum has recently exhibited the formation of an inverse head and shoulders pattern, with the left shoulder ranging from 2090 to 2115, the head at 2075-2078, and the right shoulder at 2165.

To see more buying activity, a decisive break and close above the significant resistance level of 2380-2450 is crucial. Conversely, if the market fails to break and close above this level, substantial support can be expected within the shoulder range of 2090 (left) to 2165 (right).
A break and close below these levels may lead to a test of the most recent lows (the inverse head) at 2075-2078.

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