Reuters reported that a recent phase of consolidation in copper prices has the look of a mid point consolidation rather than a top, suggesting further strength in the months ahead.

Mr Dennis Gartman veteran investor said that he expects to see the industrial metal climb back toward price levels last seen in August, given its positive technical backing and robust fundamental picture.

Mr Gartman said that from a purely technical perspective it appears to us that the recent consolidation on the COMEX futures, effectively between USD 3.78 to USD 3.90 per lb has the look of a mid point consolidation rather than that of a top.

He said that should copper close its activities later in New York upward through USD 3.90 we shall cast our eyes toward a target of USD 4.25 per lb to USD 4.30 per lb over the course of the next several months.

The benchmark March copper contract on COMEX traded up through USD 3.90 per lb to touch an early high of USD 3.9350 just shy of its late-January peak of USD 3.9380 its priciest level in 4 months.

A bullish trend in London Metal Exchange-monitored warehouse inventories down more than 20% since last November has further supported Mr Gartman's bullish outlook even as stockpiles of the metal in Shanghai warehouses have gone the other way.

(Sourced from Reuters)