Copper price consolidates as AI equities selloff spreads to industrial metals market

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Copper moves down 0.07% to $6.3868

Highlights

Copper has fallen to a three-month low as a selloff in AI-related equities affects industrial metals demand expectations.
Broader risk aversion and concerns over technology sector valuations have contributed to increased downward pressure on copper futures.
Technical indicators show copper trading below key moving average levels with strong intraday selling pressure, and a high probability of a move to the $6.3176 to $6.456 range over the next few days.

Risk aversion rises as AI equity selloff hits copper demand outlook

Copper has reached a three-month low, with Beincrypto reporting that the recent selloff in AI-related equities is spilling over into the industrial metals market. This linkage suggests that concerns over technology sector valuations are dampening expectations for copper demand, as industrial metals are closely tied to the outlook for hardware production and infrastructure. In this environment, broader risk aversion has created additional downward pressure on copper futures.

Oversold signals increase rebound risk despite sell bias and resistance

On the hourly chart, HG is trading below the MA-20 and MA-50, which highlights short- and medium-term resistance, while the price remains above the MA-200 on the daily timeframe. The Ichimoku Kijun sits at $6.4032 as immediate resistance. MACD prints a sell signal, and ADX reads as neutral, implying weak trend conviction. RSI is neutral, but the Stoch RSI and CCI are both in the oversold zone, indicating a potential rebound despite intraday selling pressure. Bull/Bear Power shows sellers are in control intraday, and the Awesome Oscillator also signals a strong sell bias.

Downside risk intensifies as range support faces pressure

Over the next two to three sessions, the price is expected to move within a typical volatility band of $6.3176 to $6.456. A downside scenario is highly probable, with risk skewed toward a break below the $6.3176 support, which would open deeper losses. A bullish reversal would need a breakout above the Ichimoku Kijun at $6.4032, but this outcome currently carries low probability. If HG remains rangebound, anticipate muted, sideways trading near current levels.

Viktoras Karapetjanc, analyst at Traders Union, notes that copper is under pressure as broader risk-off sentiment in the technology sector weighs on industrial metals demand. He believes technical signals remain weak, with intraday sellers in control and momentum still negative. Macro drivers point to further downside if market confidence does not recover swiftly. "If copper can hold above the $6.3176 support, a rebound is possible — but right now, staying alert for a deeper dip remains the prudent approach."

Earlier, analysts noted that structurally tight copper supply and robust demand from technology infrastructure were supporting strong margins for miners, even as smelters faced headwinds from higher input costs and weaker processing fees. The current technical weakness and spillover from technology sector selloffs now introduce fresh downside risk, making a sustained break below the $6.3176 support a key level to watch in the coming sessions.

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.