Our last weeks report was almost prophetic as Grupo Mexico made public its intentions to close its 50,000 tpy copper mining complex in Arizona. Copper reacted to the news positively and late-evening buying coupled with short covering resulted in a close over 1,550 dollars on three-months basis. Due to the ongoing rally in copper, the technical picture of copper price has improved dramatically and if equity markets remain firm for remainder of this year then expect a test of 1,600 dollars -1,625 dollars resistance band. Aluminium is riding on the coat-tails of copper and has done well to clear the 1,300 dollars -1,325 dollars range. Readers of our report will appreciate that we had suggested a test of 800 dollars for zinc and 7,000 for nickel in our last week's report. Nickel closed above 7,000 dollars on three-months basis and zinc 15 dollars short of the 800 dollars mark.
NSTL
