Copper Is A Great Investment In 2026 - Technicals & Fundamentals Explained

*A big part of this analysis also applies to copper miners, but I prefer to cover that in a separate article

From a technical standpoint, copper is currently flipping a ≈20 year old resistance for support. On a monthly chart, copper is in a multi-year upwards channel, and it’s now close to the upper trend line of that channel. Copper is also at record lows when priced in terms of gold and silver.

From a fundamental, supply/demand perspective, copper is required for electrification, data centers, new buildings, electric vehicles, and electric appliances in general.

International Copper Study Group (ICSG) expects refined copper’s demand to surpass the available supply/production in 2026. Given that new copper mines are slow to build, increasing the supply of copper requires great investments of capital and time, and in case of continued increase of global copper demand, it may take decades for the production to meet that demand fully.

This creates a setup for a significant upwards price pressure on copper from current levels.

It's also important to be aware of the metal's general price action. Copper is not gold - copper is significantly more volatile, but post 2021, the volatility has been more compressed to the upwards channel structure described above and shown in the chart.

Regarding the maximum drawdown from the current price levels (≈$5.90/lb), I don’t believe that copper will correct more than ≈15%, as there it will find a strong support area, and soon after the bottom support trend line from the monthly upwards channel, both of which will exert strong buying pressure. Within 6 months from now, I expect copper’s price to be above the current levels. This a risk-adjusted timeframe in which you should frame the current thesis - so it means that, for the same amount of capital, your investments in copper from today will be yield significantly more than they would in at the prevailing rate in money market funds. Realistically, I think it will happen much sooner than 6 months.

In addition to everything above there is also monetary debasement, debt refinancing walls and negative pressures on USD dominance as a reserve currency. These 3, alongside the geopolitical tensions present an additional source of positive price pressure on the whole commodity sector. My copper price thesis is positioned within this liquidity flow into commodities. I’ve covered these points in detail in my previous posts.