Commodities: Copper
Similar to oil, copper has corrected over 16% from its mid-May high and on balance we believe its now headed towards the $US5.00/lb area – over the next 6-months we are likely to be sellers around $US5.00 and buyers closer to $US4.00 i.e. it’s time for some consolidation with an upside bias.
Secondly we like our old favourite the copper miners COPX ETF which has already corrected 29%, we are keen accumulators into further weakness, similar to OZ Minerals (OZL)
Similar to oil the very important industrial metal copper has corrected from its mid-May high, exactly the same time that investors started rotating away from resources towards tech. Our ideal target for copper is a test of the psychological $US4.00/lb area although we have to remain mindful that its rarely an “ideal world” and we may have to consider paying up for the likes of OZ Minerals (OZL) in the weeks ahead.
