Chart of the day: Shanghai copper catches up
The massive pennant consolidation in Shanghai’s copper futures that has dominated since December has at last come good. Prices have rallied to their highest in four years, comfortably meeting our first measured target at 51,420 yuan (US$7,869) per tonne and almost reaching the next one at 53,645 yuan. Because bullish momentum has increased and now the MACD is also positive, we feel that further gains are likely this month, helped by supportive moving averages and a gently rising, large Ichimoku cloud. Our third measured target at 57,125 yuan looks achievable, though rallies above the psychological 60,000-yuan level may be difficult to maintain. Note that this is a global phenomenon, with copper futures on New York’s Commodities Exchange also trading at multi-year highs.
Nicole Elliott is a technical analyst