LME Copper has encountered resistance near 13,400, with a slowing momentum suggesting a possible short-term consolidation, according to Soci\u00e9t\u00e9 G\u00e9n\u00e9rale’s FX analysts. The daily MACD, once at multi-year highs, has fallen below its trigger line, indicating reduced upward momentum.<\/p>\n
Copper could consolidate within the range of the recent pivot low near 12,300 and 13,400. A breakthrough above 13,400 could confirm the continuation of the upward trend.<\/p>\n
FXStreet is a group of journalists selecting market insights from experts, offering insights from both commercial and internal analysts. It is important to conduct thorough research before making investment decisions, as investing involves various risks.<\/p>\n
Information shared by FXStreet and authors is not a recommendation to buy or sell assets and should be verified independently. FXStreet and the author are not liable for errors or loss related to the information provided.<\/p>\n
We are seeing the powerful rally in LME Copper take a break after hitting a significant barrier around the $13,400 level. Technical indicators like the daily MACD are showing that upward momentum is fading, signaling that the market is likely to pause here. This comes after an aggressive climb from the $9,500 range that we saw for much of 2025.<\/p>\n
For the next few weeks, the market is expected to trade sideways between the recent low near $12,300 and the high of $13,400. This range-bound environment suggests strategies that benefit from low volatility, like selling out-of-the-money call and put options. An iron condor, for instance, could be structured to profit as long as the price remains within this channel.<\/p>\n
This consolidation aligns with recent economic data, as China\u2019s official manufacturing PMI for December 2025 came in at a softer-than-expected 50.1, indicating a slight slowdown in industrial demand. However, supply remains tight, with LME registered copper inventories still hovering near multi-year lows at just under 60,000 tonnes. The price rally last year was also intensified by the prolonged labor strikes at major Chilean mines during the third quarter of 2025, the effects of which are still being felt.<\/p>\n
Traders should set alerts for a decisive close above $13,400, as this would confirm the bull trend is resuming and make long call spreads an attractive position. A break below the $12,300 pivot low, conversely, could signal a deeper correction. This bearish move might be accelerated by the kind of global risk-off mood that has recently pushed gold prices toward the $4,900 mark.<\/p>\n
Implied volatility on copper options has already started to decrease from the highs we witnessed during the sharp rally in late 2025. This environment is favorable for option sellers who can collect premium from the expected lack of movement. Selling strangles could be particularly effective, profiting from both the sideways price action and the ongoing decline in volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"
Copper faces resistance at 13,400; momentum slows, suggesting consolidation between 12,300 and 13,400 levels.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39746","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=39746"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39746\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}