When 2014 started, the outlook for industrial metals couldn’t have been more bleak. Almost every single base metal was hitting new lows and so were commodities indexes. The US Dollar seemed to be gaining ground and Chinese economic data wasn’t very positive. In short, there was no need to take long-term positions in any of the base metals.
Six months into the year, we can see that the picture is changing. During the first half of 2014, some base metals such as nickel and zinc have already achieved buy signals, commodities indexes have experienced significant gains, the dollar has lost some ground and Chinese economic data has improved thanks to support from stimulus measures taken by Beijing.