Copper futures retreat after tech stock selloff: Can HG avoid deeper losses?

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Copper down 1.01% today to $6.5358

Highlights

Copper futures retreated from a two-week high as reduced risk appetite led to selling in cyclical assets on October 29, 2026.
A selloff in technology stocks and an oil price rally shifted capital flows away from copper, prompting buyers to step back.
Technical indicators show sustained selling pressure with copper trading below short- and medium-term averages, with next-day range projected at $6.4786 to $6.593 and downward movement rated very high probability.

Reduced risk appetite prompts futures pullback amid cross-asset volatility

Cautious investor sentiment led to a decline in copper futures from their recent two-week high on October 29, 2026, as reported by Mining. This retreat was driven by reduced risk appetite, with Bloomberg noting that a selloff in technology stocks and a rally in oil prices contributed to shifting capital away from cyclical assets like copper. The resulting environment saw buyers step back, leading to a pullback in the futures market as market participants weighed broader market volatility.

Bearish momentum intensifies while key technical barriers limit rebounds

On the H1 timeframe, HG trades below its MA-20 and MA-50, indicating immediate and medium-term technical barriers, yet remains above the MA-200 on the daily chart. The Ichimoku Kijun at $6.597 is acting as near-term resistance. Momentum readings highlight negative sentiment: MACD and ADX both register Sell signals, RSI is at 29.8, and both Stochastic RSI and CCI are oversold. Bull/Bear Power is firmly negative, and the Awesome Oscillator also aligns with prevailing downside momentum.

Downside continuation favored as resistance limits rebound odds

Over the next trading day, copper is expected to consolidate between $6.4786 and $6.593 based on projected volatility. The probability of a move higher is classified as very low, while the likelihood of continued downside is very high. If the price breaks above the $6.597 resistance level, a short-term rebound or covering could occur; a drop below $6.4786 would likely trigger further declines and extend the negative trend.

Viktoras Karapetjanc, analyst at Traders Union, notes that recent price weakness in copper is closely tied to a cautious shift in market sentiment and macro risk-off flows. He sees negative momentum reinforced by technical factors and broad risk reduction following a tech selloff and oil rally. Buyers have exited for now, so pressure may persist in the very near term. However, Karapetjanc maintains that strong macro fundamentals leave room for a rebound if sentiment stabilizes. "If copper can reclaim $6.597, I expect renewed interest from long-term buyers and the potential for a sharp recovery," he says.

Earlier, analysts noted that copper was consolidating amid heightened geopolitical influences and shifts in physical inventories. The latest market action strengthens this cautious outlook, with traders now facing an elevated risk of further downside should prices breach the $6.4786 support level.

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.