OCBC Bank has joined the list of institutional investors that are predicting new all-time highs for copper prices. This time around, strategists at OCBC predict that copper prices will break the record high of $10,190/ton (equivalent to $4.6495/pound on COMEX), especially now that prices are about 5% short of this target.
Reinforcing their stand on copper prices, the strategists indicate that they have always maintained their bullish position on copper, and they think that prices are likely to break higher.
Some of the latest data surrounding business conditions in the manufacturing sector point to further recovery, which is likely to generate demand for industrial metals such as copper. Copper price is up 0.74% presently on the day.
Technical Outlook for Copper Price
Having attained the August 2011 high at 4.5260, copper prices have taken a hiatus, but buying momentum remains high. Price action now rests within the consolidation area formed by the Aug 2011 top (ceiling) and the February 2021 top (floor). Copper price may trade within this range for some time, or we could see a break of either the top or ceiling.
A break of the August 2011 highs opens the door for the price to aim for the February 2011 high at 4.6465. However, a breakdown of the floor of the range allows for a correction, targeting 4.3995 initially. Additional downside targets reside at 4.2755 and 4.2015 (21 April low).