Copper Set to Rally: Bullish Setup with Massive Upside PotentialCopper is holding firmly at a key support level and poised for a potential breakout. The combination of bullish macroeconomic factors and tightening supply suggests significant upside potential.
China’s Growth Push:
Chinese leaders are targeting 5% annual growth in 2025, with plans to boost domestic consumption and infrastructure spending, key drivers of copper demand.
Robust Demand Drivers:
Industries like EVs, power grids, and air conditioning continue to drive structural demand for copper, aligning with the global shift toward electrification and renewable energy.
Supply Challenges:
Multi-month low inventories in Shanghai warehouses signal tight supply conditions.
Peru’s flat output and Chinese smelter profitability issues add further pressure to global supply.
With these factors converging, copper prices are primed for a bullish move from current levels.
Trade Setup
TP1: $4.3498
TP2: $4.6347
TP3: $5.000
Stop Loss: $3.8622
This trade setup offers an excellent risk-to-reward ratio, with tightening supply and robust demand creating a solid foundation for bullish momentum.