Copper going to $3.90
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Copper May Rise to $3.90 on Moving Averages: Technical Analysis
By Joe Richter - Jan 23, 2013 9:21 AM ET
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Copper, already heading for a third straight monthly gain, may reach the highest price since April in the next few weeks, according to technical analysis by Matt Zeman at Kingsview Financial.
The metal’s 15-day moving average rose above the 30-day average on Jan. 16, signaling more gains, Zeman, a Chicago-based strategist, said in a telephone interview. Prices are also trading above the 50-day moving average, another bullish indicator, he said. Copper may reach $3.90 a pound by late February, he said. That would be 5.3 percent higher than yesterday’s closing price of $3.705.
The last time the 15-day average crossed above the 30-day was on Dec. 3, and prices rallied for two weeks. Futures for March delivery slid 0.2 percent to $3.6975 at 9:19 a.m. on the Comex in New York. Through yesterday, the metal was 1.4 percent this month on signs of improving U.S. economic growth.
“We need to see a few more clear-cut closes above $3.70, but if the data continues to look good, copper should keep pushing higher,” Zeman said in a telephone interview. “We’re seeing higher lows, and that’s a bullish scenario.”
The metal will meet “resistance” between $3.80 to $3.83 before reaching $3.90, Zeman said. Resistance refers to an area where analysts anticipate orders to sell.
In technical analysis, analysts study charts of trading patterns and prices to predict changes.
To contact the reporter on this story: Joe Richter in New York at jrichter1@bloomberg.net