Despite the lack of price action, which might account for position-trimming, Shanghai copper volumes remained strong this year. The upside progress we had expected by now has not materialised and momentum is neutral, so no wonder moving averages are a mess. However, despite all the above, the essential concept of triangle consolidation following November’s very strong rally means that we are still working in what looks like a massive pennant chart pattern. This is bullish, and a very large and rising Ichimoku cloud is supportive. Therefore, we reiterate our positive view on this market. With a little luck, the lagging line will get a lift from the candles of 26 weeks ago and we will break higher.
