The copper market continues to see a lot of buying, as the market watches demand, the lack of supply, and interest rates.
Copper
The copper market initially gapped higher and then started falling during the trading session on Thursday as interest rates in America continued to climb higher, which generally works against some hard assets. The idea, of course, is that higher interest rates could drive down overall demand.
That being said, that is somewhat true, but really, at the end of the day, there is a shortage of copper when it comes to what we will need. I do think, longer term, it is a market that should be bullish. Even if we fell from here, I am looking for buying opportunities, with the 50-day EMA sitting just above the $6.50 level.
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The overall uptrend continues to see a lot of choppiness
If the market were to break above the $6.90 level, then it opens up the possibility of targeting $7. The overall uptrend continues to see a lot of choppiness, and I think a slow grind to the upside is basically what I am expecting.
So, anytime I get offered a little bit of a discount for a potentially cheap amount of copper, then I think it is good to go. I do not want to short this market. I think, given enough time, copper not only reaches $7, but it reaches much higher levels than that.
Now, keep an eye on interest rates. It is worth noting that there has been an announcement, or sources stating, that the United States and Iran are thinking about opening the Strait of Hormuz in phases. I do not know if that is true or not, but that has brought on more risk appetite. If that is the case, then demand probably picks up even further. We will just have to wait and see. Either way, this is not a market I am shorting.
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