LME three-month copper has rallied 6% over the past two weeks, recovering from the $12,900 low of late May. The move is supported by falling inventory and strong Chinese demand data. On a technical basis, the price is trading above the 20-day ($13,150) and 50-day ($13,350) moving averages, a bullish configuration.
The 14-day Relative Strength Index (RSI) sits at 62, indicating there is further upside potential before reaching overbought territory (typically 70+). The MACD line crossed above the signal line on June 8 and the histogram bars continue to widen, confirming bullish momentum.
The key resistance zone is $13,650-13,700, which capped the rally in mid-May. A weekly close above this level would open a run toward $14,000. On the downside, the $13,500 level serves as immediate support, with stronger bids at $13,350 (50-day MA). The $12,900 late-May low represents the major floor.
Open interest on LME copper remains elevated at 278,000 lots, suggesting the trend has conviction rather than being a short-covering squeeze. The contango structure has flattened to near-parity in the front months, consistent with physical tightness. Volume on the June 16 session was 12% above the 30-day average.
The technical picture supports higher prices in the near term. Buyers should layer in hedges on dips toward $13,500 rather than waiting for a substantial correction. If $13,650 breaks on a weekly close, protect upside exposure out to September. Consider buying LME call spreads at $14,000 strike for Q3 coverage.