Copper slides nearly 3% as persistent selling momentum dominates trading

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Copper slides 2.80% today to $6.2488

Highlights

A broad decline in AI-related equities has led to weakness in industrial metals, weighing on copper prices.
Copper remains stuck in established trading ranges, with ongoing negative sentiment and warnings of further downside risk.
Technicals show copper trading below key moving averages with bearish momentum and a high probability of a move to $6.0937 to $6.404 over the next five days.

Broader equity declines reinforce bearish copper sentiment and trading range

A recent selloff in AI-related equities led to broader downside in the industrial metals market, influencing sentiment toward copper. This development has contributed to ongoing negative perception in the market. Copper continues to trade within established ranges, accompanied by commentary highlighting the risk of further downside and reinforcing the prevailing tone.

Anton Kharitonov, expert at Traders Union, sees persistent weakness in copper as the technical outlook stays firmly negative. He notes that prices remain below all major moving averages, reflecting a dominant bearish bias and sellers in control across all timeframes. The recent AI-related equity selloff adds to negative sentiment, deepening market apprehension. Kharitonov highlights that downside momentum signals are aligned, with no clear signs of reversal in sight. "Until copper decisively reclaims at least the $6.404 mark, I see little reason for optimism and stay defensive," he warns.

Viktoras Karapetjanc, expert at Traders Union, recognizes near-term headwinds for copper but maintains a constructive long-term perspective. He interprets the current selloff as a temporary reaction driven by shifting sentiment in global equities, not a structural breakdown. Karapetjanc remains confident that copper's fundamental demand tailwinds are intact and sees this volatility offering entry opportunities for patient investors. "Despite short-term pressure, the market’s macro drivers support a bullish structure — further growth is likely once sentiment stabilizes," he asserts.

Jainam Mehta, market strategist, views copper trading as well contained within its volatility band. He observes a lack of momentum, but notes the oversold readings on the Stochastic RSI and CCI may attract tactical rebound trades. While the baseline calls for sideways action, Mehta considers that a sudden improvement in global risk appetite could drive a quick test of $6.404 resistance. "If sentiment diverges from current price action, I’d watch for a contrarian short-term bounce from oversold levels," he says.

Sustained downside as prices anchor below averages and bearish signals dominate

HG/USD remains below its 20-, 50-, and 200-day moving averages, with current price at $6.2488 compared to MA-20 at $6.5546, MA-50 at $6.6137, and MA-200 at $6.3355. This configuration points to sustained pressure from sellers across short-, medium-, and long-term timeframes, with near-term resistance at $6.271 and support at $6.0937. Momentum signals are predominantly bearish. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both indicate weak momentum, with the MACD signaling sell and the ADX remaining neutral. The Relative Strength Index (RSI) is neutral, while the Stochastic RSI and Commodity Channel Index (CCI) are both in the oversold zone, indicating potential for a short-term rebound. Bull/Bear Power (BBP) is negative, showing sellers dominate intraday action, and the Awesome Oscillator (AO) aligns with a bearish tone. Intraday, the pair is down $0.1802 or 2.8%, opening with a downside gap of about 0.21%, and trading near the session low. Intraday volatility stands at 2.37%. The market faces sustained pressure after the open, consistent with the prevailing momentum indicators.

Earlier, analysts noted that OceanaGold (Philippines), Inc. posted increased earnings driven by stronger gold and copper production at its Didipio mine. In the context of ongoing bearish momentum in copper futures, traders should closely monitor the $6.0937 support level, as a break below may open the way for further declines in the short term.

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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