Technicals | Feb 11 2011
By Rudi Filapek-Vandyck
Three observations stand out in today's market update by technical analysts at Barclays Capital in London. One is that investor sentiment as measured for the likes of copper and nickel has revisited extreme levels once again, suggesting the risk in the short term is for a pull back. The second conclusion is that technical charts still suggest the longer term outlook remains for further price gains. The third standout is that most technical targets for base metals remain well above present price levels.
The team has a target for nickel of $30,000/t, for copper the target sits at US$11.264/t and for aluminium it is $28,000/t. As such, the analysts continue advocating investors use price weakness to increase exposure longer-term.
The team is also positive on gold and silver and believes gold is now heading towards US$1400/oz and beyond again.
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.
