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Copper May Jump 50%, Oil to Rise Above $100: Charts

CNBC.com
Monday, 20 Dec 2010 | 5:56 AM ET

The price of copper is set to see significant gains and could even jump 50 percent, while oil is also likely to see a strong rise, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.

Copper Could Jump 50%: Charts
The price of copper is set to see significant gains and could even jump 50 percent, while oil is also likely to see a strong rise, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.

"Copper is the metal that's so useful electrically that it's deemed to have a degree in economics," Griffiths said.

When people start to become more optimistic about the world economy, the need for copper increases because the metal is used in industrial production, he said.

Copper is "actually in the process of making a new all-time high break out and always and everywhere, such a signal is a buying signal," Griffiths added.

The signal is "predicting not only a rise, but a very big rise, possibly 50 percent," he said.

"Normally we talk about gold and silver as metals going up, but they’re going up because they're money. They hedge the over - printing of fiat money, but when the base metals go up, they go up because somebody's using them," he said.

The stocks of companies that mine copper look to be on a "very good wicket," Griffiths added.

Meanwhile, there is a "very high probability" of oil rising to at least $104 per barrel, according to Griffiths.

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