Usman Salis
⬤ Copper is flashing warning signs after printing a dark cloud cover candle on the daily timeframe - a classic bearish signal that sellers are stepping in. The metal is grinding sideways right now, chopping around in what looks like the right shoulder of a potential head and shoulders setup. Price is sitting near $5.86, well below the upper channel boundary around $6.30 to $6.40, and struggling to build momentum. Still, the bigger picture isn't broken yet - copper's been riding a clean upward channel since late 2025, and that structure is holding for now. U.S. Builds Largest Copper Stockpile in Decades as 15 Million Tonne Deficit Looms by 2040 shows how supply dynamics are shaping longer-term fundamentals.
⬤ Looking at the chart, copper's uptrend is framed by two parallel white trendlines that have guided price action since autumn. After bouncing above the $5.70 support zone, the metal has tested that floor multiple times while putting in a string of lower highs - not exactly what bulls want to see. That $5.70 level, marked by a horizontal white line on the chart, has proven solid through repeated tests and acts as a key foundation inside the channel. Both the 50-day and 200-day EMAs are still underneath price, which keeps the longer-term momentum picture constructive. But this sideways churn and fading upside push suggest copper is entering a consolidation phase while traders figure out what's next. Copper Price Prediction: Can Copper Futures Push Higher After Recent Pivot explores potential breakout scenarios.
⬤ The pattern emerging looks a lot like a head and shoulders formation - left shoulder and head are clearly visible, and now the right shoulder is cooking as price stalls in the mid-$5.80s and can't reclaim the $6.15 to $6.20 area. If buyers manage to punch through and hold above that $6.20 band, the whole head and shoulders threat gets thrown out and bulls take back control. Until that happens, we're stuck in this sideways grind with lower highs, showing balance and uncertainty rather than a clean breakout. Commodity Insights: Base Metals Trend Higher as Supply Fears Resurface provides broader context on base metals movements.
⬤ Right now, copper sits at a turning point - the long-term uptrend is intact, but short-term price action is throwing up caution flags. A decisive break above $6.20 would flip the script back to bullish continuation, while prolonged weakness near support could deepen this pause. As a bellwether for global economic health, copper's next move will tell us a lot about supply-demand balance and broader market confidence.
Usman Salis
