Technicals | Sep 20 2011
By Rudi Filapek-Vandyck
Technical market analysts at Barclays have had to review their charts and assessments for copper as the price for the red metal, otherwise known as Dr Economy, has weakened further than they thought possible.
The re-assessment is now that copper is likely to see more weakness first now that technical support has been broken. The team at Barclays puts US$8110/tonne forward as the new focal point for the market, one that is expected to hold.
In any case, there seems to be some conviction that otherwise US$8040/tonne will hold as that is where "important support" on a long term horizon is situated.
On the team's assessment, daily trend indicators have now turned bearish for copper, gold and Brent crude oil futures – a threesome we haven't witnessed in a long while. There is divergence in momentum indicators still, with only gold flashing "bearish", while copper is suggesting "temporarily oversold". Momentum for Brent is believed to be Bullish.
Technical limitations
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