Commodities: Copper
Following coppers strong advance on Wednesday night OZL embraced the bullish lead rallying 3.6% yesterday, the stocks slowly starting to lag the underlying industrial metal but if we are correct and $US500/lb is looming into Christmas a pop by this quality operator towards $28 still feels a strong possibility.
A small dip in US bond yields and the $US led to an explosive night for the likes of copper and gold with the former rallying over 4%, the Australian Resources Sector should enjoy a strong session today. MM is still looking for another 10% upside from copper over the coming weeks / months implying the $US is poised for a more prolonged dip.
The copper priced corrected almost 20% from its May high dragging the Australian related names lower in sympathy e.g. OZ Minerals (OZL) corrected a whopping 26%! We are bullish copper from current levels with a test of the psychological $US500/lb area our preferred scenario hence our target for OZL is fresh highs around $28 where we would in all…
Elsewhere economic bellwether copper has found clear support after correcting over 19% from its May high. We are still targeting a test of $US500/lb into Christmas and by association fresh recent highs by the related names such as OZ Minerals (OZL) where we recently increased our position. We should be mindful that things are happening in a hurry at present, prices could easily top out and then fail before Christmas.
