Copper Forecast: Buyers Target $6.50 As Long-Term Supply Shortage Supports Rally

• The copper market has been strong in holiday-shortened trading on Monday, which makes perfect sense because we have been in a strong uptrend to begin with and now find ourselves chasing the $6.50 barrier to try to break above it.

• If and when we can break above that level, then I think it opens up much higher pricing in copper, while at the same time, even if we were to pull back a bit, I think that opens up a buying opportunity.

The buying opportunity probably extends down to the $6.20 level, an area that previously had been strong support. The 50-day EMA sits just below there, and it does offer a little bit of a trendline, if you will. As long as we can stay above it, I think that’s a good sign for the bulls in this market.

Long-Term Bullish Horizon

Keep in mind that copper is very much in demand and has a shortage of supply, so I do like buying this market regardless. I like buying dips, and I do believe that copper goes much, much higher.

The $6.75 level above was a swing high. I don't see any reason why we wouldn't go looking into the $7.00 level.

There is no scenario in which I'm looking to short copper. I just think that the longer-term scenario is so bullish that we have to assume it continues. That doesn't mean that copper goes straight up in the air forever, but until we can do something about satiating the massive amount of demand, copper remains a bullish market as far as I can see.