Technicals | Jul 18 2011
By Rudi Filapek-Vandyck
Technical market analysts at Barclays have stuck to a positive medium term view for energy and materials, and they still do so today, but nickel has become a noticeable exception. The reason is straightforward: after recent outperformance, nickel is now facing stiff technical resistance and the analysts do not believe the metal will be able to break-through it.
The only conclusion left is then that nickel's fortune's are about to turn for the worse. No doubt, nickel bulls are dreaming of a return to US$25k-plus price levels, but at Barclays the target is now for prices closer to US$22k/t.
The analysts remain of the view that copper is on its way to US$10,000/t and beyond, aluminium has its sights on a return to US$2600/t, while crude oil remains en route to US$120.60/US$100.80 and then US$127/US$105.50 for Brent/WTI respectively.
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.
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