Chart of the day: Copper on bull run?
Slow price action but volumes keeping close to this year’s record high attest to investor interest in the Shanghai copper futures contracts. We have noted basing activity in this column in early March, and this month both the MACD and momentum have become more steadily bullish. Last week, prices rallied through the 50-day, and today the 200-day, moving averages – not a decisive move in itself but another little step in what might become a stronger, longer bull move. It will be one step at a time as we first have to break above the 50 per cent (37,400 yuan per tonne) and the 61 per cent (38,400 yuan) retracement resistance levels, and then challenge April’s high of 38,850 yuan and eventually secular trend-line resistance at around 39,250 yuan.
Nicole Elliott is a technical analyst