Copper - CAML and KAZ

Wednesday, 11th December 2019 14:51 - by Rajan Dhall

Copper has moved a leg higher and taken out some key levels. The base metal has had a positive note from China as imports are on the rise and LME inventories continue to decline. The softer USD has also helped somewhat too.

As you can see from the weekly chart below, the trendline has been broken to the upside and on the daily chart, the volume on the break was above average. At the moment the price has made two higher lows and just recently took out the last wave high. 

Now the price is heading to the next resistance of $2.80/lb on the COMEX futures contract. This is a key resistance zone as a break could pave the way to the next distribution zone. If this breaks some base metals based equities could be on the rise too.

Central Asia Metals - Watching for a break of 218p

The share price has been in consolidation mode recently and the price action mimics the copper chart above. This time the trendline has not been taken out and the 218p resistance is also intact. The 200p psychological support level is still holding at the moment and as long as it still does there is some potential for a move higher.

KAZ Minerals - Looking better but needs more volume backing the move higher

Kaz is also holding above a key psychological level (500p) but the trendline here has been broken. Again Kaz follows copper prices very closely but the level I am looking at is the 523p zone. If that breaks a run on the 600p level seems likely so this is definitely one on my watchlist.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.