Copper price holds near $6,4512 resistance as Selebi Main project resource expansion weighs

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Copper gains 0.78% today, hits $6.39

Highlights

NexMetals Mining extended a high-grade copper-nickel zone at Selebi Main, potentially increasing the project's copper resource base.
The resource expansion supports future copper supply outlooks, adding a positive tone for market sentiment in the medium term.
Copper shows strong bullish momentum with most indicators overbought; expected trading range is $6.3358 to $6.4512 over 2–3 days, with 77% probability of an upside move.

Resource expansion at Selebi Main drives copper supply optimism

NexMetals Mining has achieved a notable extension of a high-grade copper-nickel zone at its Selebi Main project, potentially increasing the project's overall copper resource base. This development enhances future supply prospects for copper, as the expanded resource may eventually boost market liquidity and support long-term availability. For now, the news frames supply optimism within the sector and adds a supportive undertone to the market environment, although its immediate impact on trading dynamics may remain limited.

Bullish setup holds as overbought indicators signal caution

Specific technical levels show HG trading above the MA-20 at $6.3657 and MA-50 at $6.3588 on the H1 chart, with daily support from the MA-200 at $5.977. The Ichimoku Kijun line, now at $6.3689, stands as the nearest support. Momentum indicators, including MACD and ADX, confirm a prevailing Buy setup. However, RSI, Stochastic RSI, and CCI all highlight overbought conditions, while Bull/Bear Power signals strong buyer dominance intraday. The Awesome Oscillator further supports the current upward momentum.

Upside breakout likely as range-bound trading expected

Looking ahead, copper is expected to consolidate between $6.3358 and $6.4512 over the next two to three trading days under typical volatility. The probability of an upward move is estimated at 77%, with a downside scenario considered less likely at 23%. A breakout above $6.4512 could trigger further gains, while a sustained move below immediate support would introduce a bearish scenario.

Viktoras Karapetjanc, fundamental and macro analyst at Traders Union, sees current copper price action as well supported by both technical momentum and sector news. He notes that NexMetals Mining’s resource expansion at Selebi Main adds a positive supply outlook without immediately dampening bullish sentiment. Market momentum remains constructive, with prices trading above key averages and technical indicators favoring the upside. Karapetjanc believes consolidation may precede an eventual breakout, given strong sector fundamentals and a positive macro tone. "The combination of expanding supply prospects and resilient market structure suggests copper remains well positioned for further gains in the near term."

Previously it was reported that copper markets were experiencing mixed momentum, with technical resistance and macroeconomic factors contributing to cautious sentiment among traders. The latest developments, including NexMetals Mining's resource expansion and continued technical strength, suggest a shift toward renewed upside potential, making $6.4512 a critical breakout level to monitor for any further bullish continuation.

Source of Data: HG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.