Comment: Slowly, almost imperceptibly, LME 3-month Copper has completed a ‘rounded bottom’. The Ichimoku ‘cloud’ chart confirms that we have started a new bull market, and if the formation was classed as an inverted ‘head-and-shoulders’ its measured target would be $5100. This is still well below the Q2 2006 to Q3 2008 average of $7500. The next question is to what extent any increase is due to rising demand or to a weak US dollar. A bit of both probably, with a little extra dollop of demand so that priced in Euros it rallies towards €3800 per tonne.
A weekly close below $3400 would force us to adjust.
