We are generally pleased at how the LME base metals prices are holding onto most of the gains made since the March low. The consolidation in September was healthy retracement, with key support levels holding after being tested. Prices are rebounding strongly again, a classic sign that dip-buying has featured.
We wrote in our October 9 technical report that follow-up buying pressure was likely to continue, with overcoming the September high key to unlocking the January high. Since this has materialized, we now envisage upward momentum towards the 2019 high before the end of 2020.
All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.