Technicals | Feb 01 2011
By Rudi Filapek-Vandyck
Both copper and aluminium put in an important "low" on price charts last week, report technical market analysts at Barclays this morning. The team remains very bullish on the outlook for base metals and both copper and aluminium are expected to continue trading upwards with new all-time highs in their sight. On a relative basis, copper is expected to outperform aluminium.
The analysts' positive view on base metals is not limited to the two Biggies, with prospects for tin, nickel et al believed to be similarly positive. Tin will soon reach US$30,000/tonne and nickel is seen as on its way to break the 2010 peak of US$27,590/tonne. In addition, zinc is expected to retest the price peak from last year at US$2639/t while lead is expected to extend its rally through the recent top at US$2713\tonne.
The underlying message: there may be pull backs, in between, at times, but from a technical perspective there seems little in the way of the current rally extending to much higher price levels.
Similarly, the analysts note January's correction for gold remains within the realms of temporary corrections as witnessed over the past decade, while oil remains in an uptrend too. The analysts suggest gold is likely to remain supported near US$1300/1315/oz while the relative underperformance against silver should be reversed later in the year.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
