Copper markets pulled back just a touch early during the trading session on Friday, but buyers have come back into the market as copper continues to see a massive amount of demand.
Keep in mind that there are a couple of major copper mines in Chile that are struggling to produce, at least not at full capacity.
At the same time, we have the AI situation and the idea of AI data centers demanding so much copper that the supply-and-demand situation favors higher prices. The electrification of the global economy beyond the AI data center also helps the idea of copper opening up more momentum to the upside.
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The $6.50 level below continues to be an area of support
The $6.50 level below continues to be an area of support, right along with the 50-day EMA sitting above there. Overall, this is a market that I think continues to see a lot of upward grind to it.
Keep in mind that this is a choppy market most of the time, but it is still a positive one. It would take a breakdown well below the $6 level for me to even remotely consider shorting copper. I believe that we will try to get to the $7 level given enough time, and possibly even break above there over the next several weeks.
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