Just when we thought base metals were out of the woods, they went back into the thick jungles. At close of last week we have almost broken through key support levels of all the base metals. We had predicted selling/profit taking in copper and aluminium at rallies, but quite frankly, we did not envisage such a whacking.Base metals are not in too good a shape. Unless we see signs of trade buying this week, we could see the selling to continue. However, we don't expect overnight collapse in the base metals complex, as trade buying will kick in at some point. The US Economy numbers are mixed to positive, however, an increase in interest rates may be some time away. This should keep a lid on the base metals prices for the minute.
NSTL
