Readers of our report would appreciate that our last week's report was spot on in predicting firmer base metals prices. Copper in particular was spectacular in its clearance of the key resistance of 1,600 dollars on three-month basis. The next important support is at 1,620 dollars although temporary loss of this level may not alarm the bulls, unless we see a weekly close below 1,620 dollars in the near future. In case of aluminium we must admit that this report in the past has been apprehensive about aluminium trading above 1,400 dollars in the last quarter - looks like we might have been a bit too cautious. However, aluminium may take its cue from copper for further price moves in the remainder of 2002. Zinc has performed very well fending off selling pressure from the trade. While fundamentals remain weak, strength in the base metals complex is likely to support prices at current 750-800 dollars range. Nickel bas held very well above 7,000 dollars and a weekly close above 7,500 dollars may usher fresh gains. This week expect further attempts by the base metals complex to clear key resistance. The 1,640 dollars on three month-basis is the next important level for copper and clearance of that level is likely to take the prices towards 1,675-1700 dollars band. In the case of aluminium, 1,425 dollars is the next key level and 810 dollars for zinc. It appears that copper is set for further gains with stiff resistance at 1,640 dollars and aluminium may test 1,425 dollars. Nickel is likely to find good buying support between 7,300-7500 dollars band.
NSTL
