Copper Prices Poised for Breakout Above $6.90

The copper market continues to attract significant buying interest due to concerns over supply and demand. The market initially gapped higher but then fell during trading on Thursday as US interest rates climbed, which typically has a negative impact on hard assets. However, the shortage of copper is expected to drive up prices in the long term.

According to Christopher Lewis, a technical analyst with DailyForex, the 50-day EMA (exponential moving average) sits just above the $6.50 level, making it an attractive buying opportunity. The overall uptrend remains choppy, and Lewis expects a slow grind upwards. If the market breaks above the $6.90 level, it could target $7.

Lewis believes that copper prices will reach much higher levels than $7 in due time, citing the shortage of copper as a major factor. He also notes that an increase in risk appetite due to potential changes in the Strait of Hormuz's operations may further boost demand for copper.