Weekly charts since 2006 suggest the rise in the price of copper could be nearing a peak and is likely to come under pressure in the medium- to long-term, Roelof van den Akker, technical analyst at ING Wholesale Banking told CNBC on Tuesday.
Watch the full interview with Roelof van den Akker here:
“Prices are nearing $410, corresponding to highs seen in 2006 in 2008, which suggests some selling pressure after testing $410,” van den Akker said.
“We are $20 shy of this resistance level. Taking the rally from its June 2010 lows at $270 into consideration, we should expect some selling pressure after testing $410,” he said.
A close below $375 would even suggest a correction in the copper price
towards around $300 in the coming months, according to van den Akker.
Turning to stocks markets, van den Akker said the Nikkei could be one of the outperforming indexes in the coming weeks.
“This market lagged the other equity markets in the past few months. Other equity markets broke the highs of this year, and the Nikkei is still far below the 11,400 level of the highs of this year. We could see further upside potential within this market, retracing some of its underperformance,” he said.