Insights 
VT 
Key Points:
- Copper futures rise to $5.4207, their highest since late July
- Beijing pledges proactive fiscal support for 2026
- Fed’s dovish tilt and tightening supply underpin bullish sentiment
Copper prices pushed higher on Friday, with futures climbing 0.44% to $5.4207 per pound, marking their strongest levels in over four months.
The rally was driven by a combination of supportive central bank policy, tightening supply, and renewed stimulus signals out of China.
At its annual economic planning meeting, Beijing reaffirmed its commitment to boosting consumption and infrastructure spending in 2026 through proactive fiscal and monetary measures.
The news came just after the US Federal Reserve delivered its third 25-basis-point rate cut of the year, and Chair Jerome Powell signalled a less aggressive stance going forward, fuelling hopes for continued global liquidity.
On the supply side, traders remain focused on output disruptions in Chile and Peru, which together account for nearly 40% of global copper production.
Miners in the region face mounting challenges, from declining ore grades to regulatory delays and drought-driven water restrictions.
Meanwhile, LME inventories have dropped sharply in recent weeks, with large withdrawals linked to speculation around potential US tariffs on refined copper imports in early 2026.
Technical Analysis
Copper is trading at $5.4207, up +0.44%, extending its steady climb toward the $5.43 resistance zone. Price action remains bullish, with higher lows building from the $4.29 bottom seen in August.
The short-term moving averages (5, 10, 30-day) are firmly stacked in bullish order, signalling continued upward momentum. A clean break above the $5.43–$5.89 range could trigger a retest of the yearly high.
The MACD is in positive territory, and the histogram has ticked green again, suggesting bullish momentum is regaining strength.
Immediate support lies near $5.10, with deeper support at the 30-day MA near $4.95. As long as price remains above the short-term averages, bulls are likely to stay in control.
Bottom Line
Copper’s technical breakout aligns with an improving macro backdrop. Continued stimulus from China and Fed easing may reinforce bullish pressure, particularly if LME inventory tightness persists.
However, traders should watch for resistance at $5.89, as failure to clear it could prompt near-term consolidation.
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