As suggested by our report last week, the metals were range-bound but not without few surprises. Aluminium has performed much better than the base metals complex in past few weeks due to aggressive fund buying. It is quite likely that aluminium can go even higher in next three months, however, at this point of time it is difficult to imagine aluminium trading above 1,500 dollars in next three months. On the downside 1,350 dollars is an extremely critical support but looks under no immediate threat. On the downside, look for 1,500 dollars in next three months. Copper is positioning to clear 1,600 dollars and with close over 1,620 dollars as the next target. On the downside 1,560 dollars is a ctritical support that may be tested in the next few weeks. However, the omens are that said support may not be breached. Nickel and zinc have deflated in past couple of weeks and weigh on the complex. For zinc, 750 dollars is a critical support. This week expect renewed strength in base metals across the board and if copper closes over 1,600 dollars then we are likely to move out of current trading ranges.
NSTL
