The copper market has been back and forth during the trading session here on Friday as we are sitting just above the crucial $6.50 level. The $6.50 level is an area that's been important multiple times, and therefore, I think this is a situation where traders are going to be looking at this as the 50-day basically acting like an uptrend line.
The market is a bit of an uptrending channel, and I also think this is a situation where traders are looking for value, and they may find it here. Now, we're going to have to pay attention to the interest rate situation because it does work against certain assets that don't yield. Non-yielding assets like silver, gold, and copper all suffer as a result. The idea is that maybe there'll be less construction because of high borrowing costs.
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The demand for copper continues to be massive. Furthermore, we have to keep in mind that the market has been in a range for a while. So, if we do see these rates roll over, I think that's a good sign for copper.
There's not only support at $6.50; there is support at the $6.40 level. I've got no interest whatsoever in shorting this market. Given enough time, we could go looking to the $7 level.
Ultimately, though, this is a choppy market. This is one that is typically choppy. But I am long only of this market. I have no interest whatsoever in shorting copper. The fundamental situation has not changed at all. It's all about the interest rates. If they drop, that's more likely than not going to push copper higher.
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