Why is Copper price down 2.6% today?

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Copper slides 2.69% today to $6.40

Highlights

Copper futures fell as rising inventories on the London Metal Exchange and a tech-stock selloff weakened risk appetite.
First Quantum Minerals and Hudbay Minerals moved forward with mine expansions and new project approvals under broad selling pressure.
Technical signals favor sellers, with copper trading below key moving averages and a 76% probability of a downward move toward $6.3375 over the next five days.

Supply-demand friction and mine approvals reinforce downside sentiment

On October 22, 2026, copper futures were impacted by rising inventories on the London Metal Exchange and reduced risk appetite due to a tech-stock selloff. The market also experienced recent sharp swings, reflecting ongoing supply-demand tensions. Investments in mine expansions and new project approvals by First Quantum Minerals and Hudbay Minerals were reported, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, views today's sharp slide in Copper Futures as a warning for bulls. He notes that a 2.69% drop, paired with a decisive break below the 20-day and 50-day moving averages, exposes clear technical vulnerability. Sentiment is weakening in response to risk-off flows from tech-stock losses and increased LME inventories. Medium-term downside risk is pronounced, even with long-term support from the 200-day average still standing. "With weak momentum signals and persistent selling pressure, any upside attempt looks premature until buyers reclaim ground above $6.4675," Kharitonov cautions.

Viktoras Karapetjanc, expert at Traders Union, maintains a constructive stance despite the recent decline. He emphasizes robust underlying trends, pointing to ongoing mine expansions and major project approvals as evidence of structural demand. Karapetjanc highlights that the long-term bullish structure is intact above the 200-day moving average, offering multiple trade setups for patient investors. "With persistent supply-demand tightness and strong project flows, I expect the market to find a foothold above $6.2953 and target further growth once near-term resistance is breached," he asserts.

Jainam Mehta, market strategist, believes Copper Futures present a tactical range-trading opportunity as volatility persists. The presence of oversold readings on the CCI and Stochastic RSI may attract contrarian bids near support at $6.389. Mehta sees potential for a swift move if price decisively breaks either $6.3375 or $6.4675. "A breakout in either direction could prompt trend followers to act quickly — but for now, tactical traders should focus on fading moves within the established band," he suggests.

Bearish signals persist as prices breach key averages and momentum fades

HG/USD is trading below its 20-day and 50-day moving averages at $6.6358 and $6.6494, highlighting sustained short- and medium-term pressure from sellers. The pair is still above the 200-day average at $6.2953, which upholds a long-term bullish structure. Near-term support stands at $6.389 with resistance at $6.4675. Momentum is weak, as seen in the MACD at -0.0218 (sell signal), ADX at 13.0469 (neutral trend), and RSI at 45.7431, while CCI (-92.2563) and Stochastic RSI (5.6121) show bearish or oversold conditions. Bearish intraday signals are reinforced by negative Bull/Bear Power at -0.0002 and a sell-aligned Awesome Oscillator. The session opened nearly flat and traded toward daily lows, shedding $0.177 amid intraday volatility of 3.06%.

Earlier, analysts noted that copper was under persistent short- and medium-term pressure due to inventory surges and signs of oversold conditions, while maintaining long-term structural support. This new data further validates the prevailing bearish momentum, with traders advised to monitor the $6.3375 support as a crucial level for near-term direction.

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

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