The year of the dog, with Chinese New Year behind us, a weaker doller, we could be own our way to a nice up tick, all we need is a bit of inflation noise. Without the noise we should reach 3.4 -3.5, with the noise 3.7-3.8 but expect a roller coaster ride shorting 1.5+ moves with one eye on the doller for profit taking.
Fundamentals around Copper, Steel rebar, Iron ore, Coal not looking so rosy currently. Technically Copper HG looking weak. Dec'16 lows could be next resistance at 2.4785 (Approx LME 5500), a further significant break here could see 38.2% Fib area tested (2.3425) then Nov lows of 2.09. Support may be found at 2.5935.
Copper HG1! has been trading in a channel lately, and in a couple of trades we profited by the bounce on the descending trendline (magenta in the chart). Indicators look still quite bearish while the triangle pattern might suggest a continuation pattern high as I think it will go this direction but let's wait for confirmation. Be ready for action!