COP­PER (US$) – bounc­ing back

Finweek English Edition - - Creating wealth -

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.

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