Flat trading for Copper as $6.08 support underpins prices

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Copper falls 0.11% today to $6.26

Highlights

Democratic control of Congress has reduced the likelihood of aggressive copper import tariffs, shifting expectations for future US trade policy.
Market participants are adjusting copper demand and import flow outlooks in anticipation of a less restrictive regulatory environment.
Copper trades below key moving averages with bearish momentum signals, consolidating within a $6.0872 to $6.4394 range and a high probability of further downside.

Demand outlook shifts on lower tariff risk post-elections

The recent results of the US midterm elections have lessened the likelihood of aggressive copper import tariffs, with Democratic Party control of Congress shifting expectations for future trade policy, according to Moneyweb Co. This development reduces the perceived risk of protectionist measures that could disrupt copper supplies, alleviating some concerns tied to future price volatility. As a result, market participants are adjusting their outlook for copper demand and import flows within a less restrictive regulatory landscape.

Downside bias confirmed as resistance limits and momentum stays soft

On the technical side, HG remains below the MA-20 and MA-50 on the h4 timeframe as well as under the MA-200, pointing to a multi-timeframe downside bias. The immediate resistance is defined by the Ichimoku Kijun line at $6.3849, a level that restricts upward attempts. Momentum readings from both MACD and ADX remain weak, sustaining a sell signal, while RSI, Stochastic RSI, and CCI all sit in neutral territory. Bull/Bear Power is mildly negative, reflecting a slight intraday advantage for sellers, and the Awesome Oscillator lacks a clear directional cue.

Bearish tilt prevails amid consolidation between technical bounds

Over the next 2–3 trading days, the price is expected to consolidate within a range of $6.0872 to $6.4394, consistent with its typical volatility band relative to current levels. A break above $6.3849 would suggest room for recovery, while a move beneath $6.0872 would signal renewed downside risk and open the way for further weakness. The base case remains for sideways movement inside this corridor, with a much higher probability assigned to a bearish scenario versus any sustained upside.

Anton Kharitonov, expert at Traders Union, sees copper under technical pressure with price action constrained below major moving averages. He notes the recent US midterm election outcome has eased some regulatory fears, but technical momentum remains weak and sellers hold a modest advantage. The analyst expects consolidation within $6.0872 to $6.4394, with downside risk dominating the outlook barring a strong close above $6.3849. "Until we see a reversal above key resistance, I remain cautious and see further weakness as more likely."

Earlier, analysts noted that copper prices had been under pressure due to shifting expectations for U.S. import tariffs and evolving policy signals following the midterm elections. The current market backdrop confirms a more cautious outlook, and traders should monitor the $6.0872 support level as a decisive zone for potential downside extension in the near 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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