Copper took out long-term resistance on Dec. 21 setting a new record high at $4.296 a pound. Last month we talked with analysts in “Copper shines” about the moves we were seeing in the market.
According to Darin Newsom, senior analyst at Telvent DTN, much of the current strength is coming from growth in China. When we spoke we him at the end of November, he had said $4.27 was going to be a resistance level, but if copper could push through there then $4.50 may be obtainable.
Rob Kurzatkowski, senior commodity analyst at optionsXpress, was also bullish on expectations that copper would lead much of the commodity complex as a whole. He also said $4.50 may be obtainable on the March contract.
Jeff Greenblatt, editor of the Fibonacci Forecaster, pointed out copper in his Dec. 20 update. In it, he said, “When an important commodity like Copper challenges generational highs it might take weeks or even months to resolve.” He went onto say “If somehow going forward Copper manages to break through, the cat is out of the bag. It’s going to mean the inflation bug is only going to intensify. But traditionally, breakthroughs such as these only materialize after tests and retests.”