COPPER (US$) – bouncing back
Trend: Up again. Strategy: Buy pullbacks on an ongoing basis. • The copper price has staged a good recovery and broken out above line 2 of a large broadening formation (with line 1). It’s also moving back above the 200-day moving average, which is a bullish sign. • The daily stochastic oscillator (on top) is somewhat over-
bought, so caution is advised over the short term. • Use pullbacks here to buy the copper price (via the futures market). But it’s also a good indication for SA copper shares, such as BHP Billiton, Metorex, etc. Medium-term players can simply hold all the way up. • The price will retest its all-time high of 8 783 (from May 2006) in the months ahead and then on to 9 000 as its minimum target. Place your initial stop-loss at a closing price below 6 600 on its spot price.