Commodities | May 09 2013
Keep a close eye on the Chinese data out this week; yesterday we had trade data indicating a strong surplus and implying a lift in copper imports. Today we have CPI and PPI. A CPI read of 2.3% suggests the existence of price pressures to the topside and reveals an economy on the move. These numbers we feel could be the catalyst for another leg higher. As mentioned we have forecast a push for the metal towards the highs late Q2 or early Q3, this price action could just be a precursor.
Whilst US3.00 holds our bias towards the metal is to trade higher.
Chart Point – Copper
Technically, we have a new range. US3.05 to the downside and as to the topside, hard to tell however US380 is not out of the question. Last week's divergence provided the clue for the long position.
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