As predicted by our report last week; base metals lost further ground across the board. Flagship copper contract on LME closed slightly higher than key 1450 dollars/mt on three months basis. Copper looks terrible below 1450 dollars/t on chants and the only thing that saves copper from here is profit taking by shorts or production cuts or else copper is under serious threat to under perform even though the downside looks limited from here on. However, with copper prices revised downwards by leading investment banks, expect productions cuts in the next few months. Aluminium is close to the key support of 1275 dollars /mt on three months basis, however, the speculative interest on the short side is not as vigorous as compared to copper. Three months zinc is also close to its key support of 750 dollars /t and so are lead and nickel at 420 dollars /mt and 6400 dollars /mt respectively. Readers of this report will appreciate that this is what we had predicted in our last report.
NSTL
