Decoding the Red Line

Fundamental analysis tells you what to buy. Technical analysis tells you when. For copper in 2026, the charts are painting a fascinating picture of consolidation before a potential breakout.

The Key Levels to Watch

• $4.35/lb: The “Floor.” Every time copper dips here, buyers step in aggressively. This is strong support.
• $5.00/lb: The psychological barrier. A weekly close above this level could trigger algorithmic buying.
• $5.80/lb: The All-Time Highs (roughly). If we break this, we are in “price discovery” mode, where moves can become parabolic.

Indicators That Matter

don’t overcomplicate it with 50 different oscillators. For commodities, stick to:

1. Weekly RSI: If it’s over 70, the metal is overheated. Wait for a pullback.
2. Inventory Levels: Look at the LME/Shanghai warehouse stocks relative to price. Divergences here (price down, inventories down) are bullish signals.

The 2026 Outlook

We are forming a classic “Cup and Handle” pattern on the monthly timeframe. This is one of the most bullish setups in technical analysis. If the “handle” completes near $4.80, the measured move could target $6.50+.