Chart of the day: Copper's comeback

While gold and silver come a cropper, Comex high grade copper futures and three-month forward London Metal Exchange prices rallied to their highs last month. The chart shows a V-shaped base against March's low which lies at the half-way retracement level from 2008's low to 2011's high. Last month's rally turned the MACD indicator bullish and momentum was positive last week. It is an excellent lesson that commodities may be priced in US dollars but they do not necessarily move the same way - or with foreign exchange shifts. It should continue on to a first target at US$3.20 per pound, then February and July's highs at US$3.29.