David Fuller's view I last reviewed charts for these in on 10 December and another update at the start of 2013 is justified by the action.


Copper LME appears to be in the latter stages of an extensive base formation development following its sharp drop from the last high near $10,000 in August 2011, leading to an important low near $6650 in early October of that year. Following today's surge, a close beneath $7750 would be the minimum required to question current scope for an additional recovery, which may gather pace following clearance of the September high near $8840.

Aluminium and zinc show similar patterns. However, tin and lead, in particular, are leading. Clear downward dynamics or breaks in the progression of higher reaction lows, whichever occurs first, will be required to question medium-term upside scope for these industrial metals. This upward potential is likely to be significant, provided China remains in its overall recovery phase, as we suspect.