Copper Price Stalls at Key Fibonacci Resistance Near $6.70

Copper futures are testing a critical technical resistance level near $6.70 after a sharp rebound, placing the industrial metal at a pivotal juncture where bullish momentum is confronting signs of exhaustion. The price action on September 18 is being closely watched as it challenges a key Fibonacci retracement level that could determine the market's next directional move.

Copper Rebounds into Major Resistance

Following an impressive V-shaped recovery, copper prices have successfully reclaimed the 200-period simple moving average (SMA), which now acts as a key support level at $6.5804. This move confirmed short-term bullish momentum for the commodity, widely seen as a barometer of global economic health.

However, the rally is now facing its most significant hurdle yet. The price is trading directly against the 61.8% Fibonacci retracement level at $6.6875. This technical indicator is a common point where strong price trends often pause or reverse, making it a focal point for traders.

Conflicting Signals Emerge

Several indicators present a conflicting picture for the market. On the bullish side, the Moving Average Convergence Divergence (MACD) indicator is flashing a positive signal, and the price remains above the bullish SuperTrend indicator at $6.5458.

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Conversely, cautionary signals are growing. The Relative Strength Index (RSI) is elevated at 63.33, approaching overbought territory and suggesting the upward momentum may be waning. Furthermore, the price is nearing the Upper Bollinger Band at $6.7468, another potential resistance area. Analysts also note that trading volume has been declining as the price has risen, a divergence that can signal weakening conviction among buyers.

Key Price Levels in Focus

For market participants, the immediate zone to watch is the resistance cluster between $6.68 and $6.75. A decisive and high-volume close above this area could signal a continuation of the uptrend, with potential targets near $6.80 and higher.

If the resistance holds and the price is rejected, a pullback could be imminent. The first significant area of support lies between $6.54 and $6.58, which encompasses both the 200-period SMA and the SuperTrend indicator.