Copper Stalls at $6.72–$6.76 Resistance as Momentum Flashes Overbought

Copper trades at $6.7103, just below the $6.72–$6.76 resistance zone that has capped past rallies, with a stretched Money Flow Index and a forming double top signaling buyer exhaustion. The metal still holds above its long-term moving average, keeping the broader trend intact even as traders eye a possible reversal.

Bulls Push Into a Stretched Zone

Copper's five-hour chart shows the metal wedged just under a resistance zone at $6.72–$6.76, trading at $6.7103 as of the latest update. The broader trend still favors buyers, with copper holding above its long-term moving average and momentum still rising.

But the 200-period moving average sits at $6.4352, and the MACD reading of 0.03 remains above its 0.0129 signal line. Momentum indicators point to fatigue at the same time: the Money Flow Index has climbed to 83.17, above the 80 level that typically warns of buyer exhaustion, while price sits pinned against the upper Bollinger Band at $6.7021.

A Double Top Takes Shape

A classic double top pattern is forming as copper struggles to clear the zone, a setup where buyers have failed to break through before. A bullish Marubozu candle has just printed into resistance, leaving the next move dependent on whether buyers can finally clear it.

The pattern is forming near $6.76, and bullish positions invalidate if copper falls below $6.52 while bearish bets fail if price closes above $6.78.

Traders Watch the "Messy Middle"

Between $6.56 and $6.72, risk-reward turns unfavorable — described as the messy middle of the recent surge rather than a zone for new positions. A confirmed five-hour close above $6.78, backed by expanding volume and a rising MACD histogram, would show buyers have finally broken through resistance.

A bearish reversal would instead need the Money Flow Index to slip back under 80 alongside a bearish MACD crossover — a sign the rally is fizzling.

Mean Reversion Risk Builds

Copper now trades 2.1% above its 20-bar simple moving average, a stretch that markets often snap back from quickly. Traders chasing the rally into resistance risk getting caught in a reversal, making tight stops and patience the priority near the zone.

Source: Investing.com

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