Copper is trading at $6.5978, pinned inside a $6.55-$6.65 range that traders are watching as the levels deciding the next move. The metal sits above its long-term uptrend line, but weak trend strength suggests a breakout is building.
Copper is stuck in a tight band, with the five-hour chart showing price consolidating between $6.55 and $6.65 while the ADX reads just 17.2. That weak trend reading points to a market waiting for a decisive move rather than one already trending.
Longer-term uptrend still intact
The metal holds above its 200-day SMA at $6.4257 and above the Ichimoku cloud's first support zone near $6.5493-$6.5557, keeping the broader uptrend technically alive. However, momentum has been slipping since copper's $6.8665 peak, with lower highs forming since then. Average true range sits at just 0.048, or 0.72%, meaning any breakout from the range could move quickly once it starts.
Setups on both sides of the range
Bulls can look for a pullback to $6.55, which lines up with the Ichimoku support, or a breakout above $6.62, where SuperTrend resistance clears. From there, the first target sits at $6.75, with $6.86 and $7.00 open for extended runs. Bears, meanwhile, can target a failed rally near $6.58 or a confirmed breakdown below $6.49, aiming first for $6.42 at the 200-day SMA, then $6.28 and $5.92 if momentum builds.
Where the trade breaks down
The $6.55-$6.65 zone itself is a no-trade area for now, since the VWAP and SuperTrend indicators cluster there and whipsaws are common. The bulls' case fails below $6.42, while the bears' thesis breaks if price closes above $6.75. Given the weak ADX reading, false breakouts remain likely until volume builds behind whichever direction copper eventually picks.
Source: Investing.com
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