Most markets rose last week, with some like tin and zinc making new short-term highs, while others, notably copper, lead, and crude oil are testing overhead resistance, according to John Gross, president, J.E. Gross & Associates, Newport, R.I.
Says Gross in his most recent Copper Journal Weekly Report, “While it is good for many that prices have improved over the past few weeks, the advance seems to be a bit too much, too fast, and without benefit of a significantly stronger fundamental environment.
“Sure, inventories for base metals are down on a year-to-date basis, but when we look at how far prices have risen from their recent low points, it’s concerning. For example, copper is up 18% from $1.94 just two months ago; tin and nickel are up 28% and 26% respectively, while crude oil has climbed almost 35% over the past four weeks. These are not constructive long term basing patterns, but from where we sit, just short-term adjustments.”