Copper Futures Extend Upside Bias on Tight Supply and Strong Demand
Copper futures are maintaining their upside bias due to a combination of technical indicators and underlying demand signals, according to recent market analysis. The most-active contract on COMEX is holding above key support levels, with traders eyeing further gains amid tightening supply conditions and steady industrial demand.
The near-term chart structure for copper futures remains constructive, with the contract forming higher lows and higher highs over the past several sessions. Technical indicators such as the 50-day moving average trending upward and the Relative Strength Index (RSI) sitting in a bullish zone without being overbought suggest room for additional upside.
The supply constraints are driving up copper prices, primarily due to disruptions at key mines in Chile and Peru and declining inventory levels at major exchanges. The energy transition is also contributing to increased demand for copper, as it remains essential for electric vehicles, renewable energy infrastructure, and grid upgrades.