Comment: Last week’s close above the top of the large ‘triangle’ formation has given bullish momentum a shot in the arm, taking it higher than it has been since March. The front month contract is currently testing pivotal resistance around 145.00 cents per pound. A weekly close above here should set off another sharp rally to 154.00 where a little more hesitation is likely. Later this year, possibly around year-end, expect a re-test of February 2008’s high at 169.60 and then another rally in 2010 to our measured target which remains at 180.00/200.00.
A sustained break below 135.00 would postpone all of the above while a break below 128.00 forces us a re-think.
