Copper trades flat after Federal Reserve policy meeting risk-off tone

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Copper gains 0.87% today to $6.54

Highlights

Weakness in artificial intelligence stocks has reduced risk appetite, leading market participants to be more cautious toward copper.
Copper price action shows traders are waiting for clearer macroeconomic guidance ahead of the upcoming Federal Reserve policy meeting.
Copper trades in a consolidation band with mixed technical momentum, projected to range from $6.4214 to $6.6662 in the next sessions.

Risk-off flows from tech sector drive cautious copper positioning

According to Bloomberg, continued weakness in artificial intelligence stocks has weighed on risk appetite in financial markets, leading investors to adopt a more cautious stance toward commodities like copper ahead of the Federal Reserve’s policy meeting. With broader risk-off sentiment dampening speculative interest, copper’s movement reflects market participants’ sensitivity to developments in adjacent asset classes. Market positioning remains tentative as traders monitor macroeconomic signals for clearer direction.

Near-term support holds as mixed momentum tempers further upside

On the technical front, HG is holding above the MA-20 while trading marginally below the MA-50 on the H4 chart, establishing near-term support but encountering medium-term resistance. The price is well above the daily MA-200, and the $6.51 Ichimoku Kijun level is acting as immediate support. Momentum readings are mixed: MACD signals a strong sell, ADX is neutral, while RSI and CCI remain in buy territory. Stoch RSI shows overbought conditions, and Bull/Bear Power indicates intraday buyer dominance.

Downside bias prevails as consolidation likely within volatility band

Over the next two to three sessions, price is expected to consolidate within a typical volatility band between $6.4214 and $6.6662. The probability of an upward move stands at 45%, suggesting a somewhat higher likelihood of a downside scenario near term. If copper breaks above resistance, the upper boundary of the expected range comes into focus; a bearish move below current support could open the way to deeper short-term losses.

Anton Kharitonov, analyst at Traders Union, sees copper trading in a narrow range following lackluster price action. He notes that broad market sentiment has deteriorated, with risk appetite hurt by weakness in AI stocks ahead of the Fed meeting. Technical indicators remain mixed, limiting conviction on direction. "Until copper clears $6.6662 or loses $6.51 support, I see little reason to take directional risk here."

Earlier, analysts noted that copper prices were consolidating as shifts in supply and broader risk sentiment influenced trading direction. The current analysis adds that heightened caution in global markets, particularly linked to weakness in adjacent asset classes, warrants close monitoring of the evolving support and resistance dynamic as a catalyst for the next directional move.

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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