Copper Forecast: $7 Resistance In Focus As Supply Tightens

(MENAFN- Daily Forex) Copper continues to see a lot of bullish action, as buyers are willing to step in and pick up value whenever it is presented.

Copper

Copper continues to see a lot of strength on Monday as we tested the $6.85 level before pulling back slightly. Ultimately, this is a market that continues to see a lot of buying pressure. That makes sense because, quite frankly, most of the major copper-producing mines around the world are struggling to keep up with demand.

AI data center demand is off the charts, and at this point, it's worth noting that there are a couple of major mines in Chile that just cannot produce at full capacity. That adds more questions to supply. But really, at this point, we have spent so little time finding new copper sources that the future for copper looks quite bullish.

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The sign of hesitation here might just mean that we are not quite ready to break out

There is a lot of psychology attached to the $7 level. But any pullback at this point in time will have me very interested, especially the closer we get to the $6.50 level.

Copper has been in a slow and steady grind higher despite the fact that interest rates have been extraordinarily high. Typically, that would be negative for copper, and maybe it's providing a little bit of a drag, but the demand situation is that serious.

The copper market will be one of the more important ones to watch into the future, and I think it's got quite a long runway to go before things turn around. I'm a buyer of dips, I'm a longer-term holder, and I also am invested in several copper producers via the stock market at the same time.

I am extraordinarily bullish on copper. That won't change anytime soon. If we fall here, it gives me an opportunity to get long yet again.

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