Copper lifted by global tech rally: Can HG hold recent gains?

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Copper down 0.37% today to $6.32

Highlights

Copper demand is benefiting from increased investment in power infrastructure and data centers tied to the global technology share rebound.
The commodity maintains an integral role in high-growth industries, supporting recent positive sentiment in the copper market.
Copper trades below key moving averages and faces prevailing bearish pressure, with price forecast to hold between $6.2589 and $6.3857 and a 65% probability of further decline.

Tech sector rally bolsters copper demand amid infrastructure expansion

Copper's recent performance has been influenced by a rebound in global technology shares, according to Bloomberg. The demand for copper is closely tied to its use in power infrastructure and data centers, both of which have seen increased investment alongside the tech sector's rally. This interdependence has supported copper's short-term sentiment, reflecting the commodity's integral role in high-growth industries.

Mixed momentum signals as resistance limits HG upside potential

Technically, HG remains below its 20-day and 200-day moving averages but above the 50-day average. The Ichimoku Kijun is positioned at $6.3372, acting as immediate resistance. Momentum signals are mixed: MACD is generating a strong buy signal, while ADX remains neutral. Both RSI and Awesome Oscillator sit in the neutral zone. Oversold readings on Stoch RSI and CCI hint at rebound potential, while Bull/Bear Power at -0.0185 indicates slight seller advantage.

Downside risk persists unless $6.3372 resistance is breached

In the short term, pricing is likely to stay within the $6.2589 to $6.3857 bandwidth over the coming 2-3 sessions, representing a typical volatility band for HG. There is a 65% chance of further downside, while a short-term rebound remains a less probable scenario unless price breaks above $6.3372. Sustained weakness below this resistance would increase pressure toward the lower end of the range.

Anton Kharitonov, expert at Traders Union, sees copper stuck in a short-term range as sentiment from the tech sector only slightly lifts demand expectations. He notes that technicals remain mixed with price unable to reclaim its key moving averages and resistance at $6.3372 standing firm. The analyst expects further downside is likely unless clear momentum shifts. "As long as copper remains capped below $6.3372, I see little reason to trust any rebound here."

Earlier, analysts noted that tightening supply conditions and fragile technical support were keeping copper prices susceptible to downside risks. The current setup introduces the influence of tech sector demand, suggesting that traders should monitor whether sustained weakness below $6.3372 gives way to a deeper move toward the lower end of the prevailing range.

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.