As predicted in our last week's report copper and aluminium moved sideways and attempted clearing key resistance of 1620s dollars and 1420s dollars respectively. However, latest numbers from US, including US Equities, did not assist base metals at all as copper and aluminium slid back towards 1600s dollars and 1390s dollars.Going by the market sentiment, it is difficult to be extremely bullish. Moreover, if the current economic scenario continues along with worries of inflation arising mostly out of possibly higher oil prices, the fundamentals may take a further knock. Having said that, it looks unlikely that a severe whacking for base metals is around the corner as currency and interest rate movements may provide investment opportunities for funds and lend a floor to the market short term.
NSTL
