HG technical analysis: Consolidation near $6.6 support highlights weak momentum

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Copper trades flat today at $6.652

Highlights

Renewed demand from China and expectations for more AI infrastructure are increasing investor focus on copper's industrial usage.
Market participants are watching for signals from the upcoming US Federal Reserve rate decision, which could affect liquidity conditions.
Copper trades in a bullish pattern with strong momentum indicators, projected to remain in the $6.5859 to $6.7181 range over the next 2 to 3 days.

Renewed Chinese demand and AI sector rebound lift copper sentiment

Copper markets have seen renewed demand from China alongside a rebound in AI-related stocks, influencing sentiment and supporting expectations for higher industrial consumption, according to Mining Com. These demand signals from China, combined with the outlook for expanding AI infrastructure, have contributed to increased attention on copper's role in the global supply chain, as noted by Mining. Meanwhile, market participants are watching for policy signals from the upcoming US Federal Reserve interest rate decision, which may affect liquidity conditions, as reported by Bloomberg.

Bullish bias builds as buy signals clash with intraday selling pressure

On the hourly chart, HG is trading above the MA-20 at $6.6493, the MA-50 at $6.5939, and the MA-200 at $6.3115. The Ichimoku Kijun at $6.605 serves as immediate support. MACD displays a strong buy signal and ADX signals buy, highlighting robust bullish momentum intraday. RSI also leans toward buy, while Stochastic RSI and CCI are both in oversold territory, suggesting the potential for dip-buying activity. Bull/Bear Power is classified as sell, indicating sellers retain a slight edge intraday, and the Awesome Oscillator is neutral, providing no directional bias for this session.

High upside odds persist as volatility remains tightly contained

HG is expected to remain rangebound over the next two to three trading days, with a typical volatility band between $6.5859 and $6.7181. The probability of an upward move is assessed as very high (above 80%), while the chance of a downside break is very low (below 20%). Continued sideways price action is likely in the baseline scenario. However, a break above the upper boundary could trigger further bullish momentum, while a breach below immediate support would increase the risk of short-term sentiment shifting negative.

Anton Kharitonov, expert at Traders Union, sees copper trading in a tight range with sentiment supported by renewed Chinese demand and activity in AI-related sectors. He notes that technical signals show mixed momentum, while the market awaits clarity from the upcoming US Federal Reserve decision. Kharitonov remains cautious, emphasizing that a clear breakout above resistance or a break below support is needed before taking a directional stance. "Until copper breaks out of its current range, my tactical view stays strictly neutral and defensive."

Previously it was reported that Mitsubishi Materials Corporation would close its copper and copper-alloy strip processing operations in Johor as part of a strategic restructuring. Against this backdrop, market participants should monitor how evolving supply chain dynamics and continued demand from China may impact copper’s price stability, with a potential breakout above the established range likely to catalyze 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

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.