Copper markets are sitting just above the crucial 200-Day EMA on Wednesday, as we are observing Veterans Day in the US, driving volumes down.
Copper
Copper gapped higher to kick off the Wednesday session, shot to the upside, and then rolled over. This suggests to me, although you must keep in mind it was Veterans Day in the United States, so a significant amount of liquidity was disappearing, the possibility that the copper market remains a little bit soft in the short term.
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Longer term, I love copper. I think this is going to be one of the true historic longer-term bull runs, but we've seen some real problems with real rates in the United States offering payment when non-yielding assets such as copper, or even gold and silver, just can't compete.
Supply has started to recover
A lot of concern right now, I think, comes back to the fact that supply has picked back up. There were some labor shortages in Chile, and of course there are concerns about the AI trade unraveling. Even if it does, I do think someday we're going to see copper go on a historic run.
As things stand right now from a technical analysis standpoint, we're sitting right above the 200-day EMA, and it does seem to support this market. If we could break above the highs of the Tuesday candlestick, I think that would be a very bullish sign, and I would get into the copper market on the long side at that point. I will start to build more positions.
If we were to break down below the swing low, then I might re-evaluate things at $6, because that's a large, round, psychologically significant figure and an area we've seen action at previously.
I do like copper longer term. Right now, we're starting to see more supply, and this whole AI unwind on Wall Street is causing some concerns, especially with some of the credit issuance, etc.