Notes on Copper
It is ATEC’s view that the recent correction in Copper (and other commodities in general) is exactly just that — a correction in an upcycle.
Even though Beijing’s recent rhetoric is firmly against rampant price speculations in this space, ATEC believes there is only so much they can do in the short term, to release the steam from the valve. That is because, as mentioned earlier, the underlying and arguably more important driver for the current upturn in Copper, is the ambitions of governments globally to steer the world towards being carbon neutral via renewable energy sources.
This necessitates infrastructure building, which will be copper-intensive. The coordinated move towards EV adoption globally will only raise the threshold of demand in the immediate years ahead, which will prove near impossible for Supply to match.
Hence, we choose to look for re-entry levels in beaten-down related names here.