AI and data center demand uncertainty drives Copper lower

Traders Union
All News
Commodities
Copper drops 3.02% to $6.1983 today

Highlights

Copper fell below $14,000 a ton after the US midterm elections with new tariffs on refined copper now appearing less likely.
The price rebounded above $14,000 a ton as a weaker US dollar and diminished trade barrier concerns steadied energy-intensive demand forecasts.
Technical signals show strong downside momentum, with copper trading below major moving averages and a projected range of $6.06 to $6.3366.

Supply nerves ease and sentiment steadies after midterm-driven volatility

Copper prices dropped below $14,000 a ton after the US midterm elections, as reported by Bloomberg, reflecting heightened uncertainty over potential US tariffs on refined copper and possible shifts in demand from the AI and data center sectors. According to Home, the possibility of new trade barriers now appears reduced, which has steadied some nerves around supply constraints for energy-intensive industries. A subsequent rebound in prices above $14,000 a ton was recorded on Wednesday, with Mining Com and Finimize noting that investors digested the midterm results and the impact of a weaker US dollar helped stabilize sentiment, though price action has remained under broader selling pressure.

Bearish momentum holds as technical boundaries and indicators align

The 4-hour chart shows HG trading below both the MA-20 at $6.4258 and the MA-50 at $6.5221, while the daily chart places prices beneath the longer-term MA-200 at $6.3355. The Ichimoku Kijun sets immediate resistance at $6.426. Momentum indicators continue to favor sellers, with MACD at a strong sell reading and ADX also reflecting bearish strength. RSI and Stoch RSI remain neutral, and CCI has dipped into the oversold zone, indicating possible selling exhaustion. Bull/Bear Power stands modestly positive at 0.0357, pointing to some intraday buyer activity, while the Awesome Oscillator is neutral and does not confirm the prevailing trend.

Downside risk elevated as breakout odds remain limited

Over the next several sessions, copper is expected to trade within a forecast range of $6.06 to $6.3366, reflecting typical volatility relative to current levels. The probability of a breakout to the upside is very low, while the chance of continued declines is notably high. If price consolidates, it would stay confined within this corridor; a move above resistance at $6.426 could signal a challenge to the broader bearish structure. On the other hand, a drop below key support at $6.06 would likely intensify selling pressure.

Anton Kharitonov, expert at Traders Union, sees copper under persistent pressure as both technical and news-driven sentiment remain largely negative. He believes sellers maintain control as long as prices are below $6.426, with little sign of a bullish reversal. The cautious mood is reinforced by recent tariff concerns and only a modest intraday recovery. "Base case remains downside for now, unless copper decisively breaks $6.426 resistance."

Earlier, analysts noted that copper futures faced sustained downside momentum as persistent selling pressure kept prices anchored below key moving averages. The current article reinforces this bearish outlook, highlighting that traders should closely monitor the $6.06 support level, as a decisive break below it could trigger a fresh wave of declines.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.