Copper, often called “the metal with a PhD in economics”, is sending a clear message: we’re entering a new bullish era.
As of mid-May 2025, Copper is trading above $4.85 per pound, approaching the psychological $5.00 level — a key threshold that could trigger further upside momentum.
________________________________________
🔎 Fundamentals: A Perfect Storm of Demand and Supply Pressure
Copper is no longer just about cyclical demand — it's about structural shifts:
• 🟩 Demand is exploding thanks to:
- Accelerated electrification (EVs use up to 4x more copper than traditional cars)
- Renewable energy infrastructure (cables, turbines, transformers)
- China’s infrastructure push and global energy transition
• 🟥 Supply remains constrained:
- Inventories at multi-year lows (LME + SHFE down over 40% YoY)
- Underinvestment in mining: new copper projects take 8–10 years to develop
- Smelting disruptions in Peru and DRC
- China controls ~70% of global refining capacity — a geopolitical risk amid trade tensions
📊 Big Banks Are Bullish:
• Goldman Sachs sees $10,700/ton within 12 months
• Morgan Stanley targets $9,500/ton by end of 2025
• J.P. Morgan: "Copper is at the heart of a multi-year base metals upcycle"
________________________________________
📉 Technical Outlook: Higher Lows, Strong Rebounds, and a Breakout in Sight
From a charting perspective, Copper’s structure confirms what the fundamentals are screaming:
• After topping around $5.00 in March 2022, the price dropped sharply to just above $3.00 by mid-summer
• That area marked a strong support zone, coinciding with old resistance from 2017–2018
• A higher low at $3.50 was made in October 2023, setting the tone for a new bullish phase
• Since then, Copper has respected a clear ascending trendline
🚨 The drop in late March / early April (coinciding with the start of the Tariff Saga) brought high volatility, sending price briefly from above $5.00 to around $4.00 support. But bulls stepped in fast.
Now, price is back near $5.00, threatening a major breakout.
________________________________________
🎯 What’s Next?
If Copper breaks above the $5.00 resistance zone, we could see acceleration toward the $7.00 level — a feasible medium-term target, supported by both supply/demand dynamics and price structure.
________________________________________
📊 Trading Plan:
With fundamentals and technicals aligned, the strategy is straightforward:
Buy dips, especially toward $4.60–$4.70, and look for confirmation of breakout above $5.00 for medium-term positioning.
________________________________________
📌 Big moves need big reasons — and Copper has plenty.
This may be just the beginning of a multi-year opportunity. 🚀
As of mid-May 2025, Copper is trading above $4.85 per pound, approaching the psychological $5.00 level — a key threshold that could trigger further upside momentum.
________________________________________
🔎 Fundamentals: A Perfect Storm of Demand and Supply Pressure
Copper is no longer just about cyclical demand — it's about structural shifts:
• 🟩 Demand is exploding thanks to:
- Accelerated electrification (EVs use up to 4x more copper than traditional cars)
- Renewable energy infrastructure (cables, turbines, transformers)
- China’s infrastructure push and global energy transition
• 🟥 Supply remains constrained:
- Inventories at multi-year lows (LME + SHFE down over 40% YoY)
- Underinvestment in mining: new copper projects take 8–10 years to develop
- Smelting disruptions in Peru and DRC
- China controls ~70% of global refining capacity — a geopolitical risk amid trade tensions
📊 Big Banks Are Bullish:
• Goldman Sachs sees $10,700/ton within 12 months
• Morgan Stanley targets $9,500/ton by end of 2025
• J.P. Morgan: "Copper is at the heart of a multi-year base metals upcycle"
________________________________________
📉 Technical Outlook: Higher Lows, Strong Rebounds, and a Breakout in Sight
From a charting perspective, Copper’s structure confirms what the fundamentals are screaming:
• After topping around $5.00 in March 2022, the price dropped sharply to just above $3.00 by mid-summer
• That area marked a strong support zone, coinciding with old resistance from 2017–2018
• A higher low at $3.50 was made in October 2023, setting the tone for a new bullish phase
• Since then, Copper has respected a clear ascending trendline
🚨 The drop in late March / early April (coinciding with the start of the Tariff Saga) brought high volatility, sending price briefly from above $5.00 to around $4.00 support. But bulls stepped in fast.
Now, price is back near $5.00, threatening a major breakout.
________________________________________
🎯 What’s Next?
If Copper breaks above the $5.00 resistance zone, we could see acceleration toward the $7.00 level — a feasible medium-term target, supported by both supply/demand dynamics and price structure.
________________________________________
📊 Trading Plan:
With fundamentals and technicals aligned, the strategy is straightforward:
Buy dips, especially toward $4.60–$4.70, and look for confirmation of breakout above $5.00 for medium-term positioning.
________________________________________
📌 Big moves need big reasons — and Copper has plenty.
This may be just the beginning of a multi-year opportunity. 🚀
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.