Copper (Cu) has eked out a ~$0.30 bounce from its early August low, similar to the one witnessed in June/July. At MM, we are bullish on Cu over the coming years as global electrification will leave the industrial metal in short supply. However, the spluttering Chinese economy and risks of a potential global recession have weighed on Cu over recent months, sending it down ~25% from its May high – a much larger retracement than MM envisaged.
- We are 50-50 towards Cu short-term, although interestingly, the copper stocks look more bullish.
- From a technical perspective, we want to see a break of $US4.50/lb before feeling confident that the swing low is in place.
MM is bullish towards Cu medium-term
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