Copper stands to benefit in a world where there is an abundant need for clean green electricity. By necessity, there will be a need for connective wiring which should keep the reasons for ultimate copper gains well and truly alive beyond the near term drivers. Many companies are moving away from fossil fuels to renewable energies. These renewable energies rely heavily on copper in order to function and that should be great news for copper bulls moving forward.

The most recent gains in copper have been at least partly about supply concerns. Supply disruption issues in South America, which is home to the world’s two largest producers have supported the metal. Chile (the world’s largest producer) and Peru (the world’s second-largest producer) mean that any supply issues impacting South America impact the whole copper market.

Copper has recently been trading near the $6500 level and that is around 8% above its 2-year average level. This means that some of the strong support for copper has not just been on supply concerns, but also the anticipation of a green future needing wiring.

In terms of access to the upside expect to find buyers on a breakout on the monthly chart (at the very top). A clean break on the monthly chart and that opens the way for higher copper prices.