Copper Analysis: Bullish Trend Consolidates as Volatility Compresses at Key Levels

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the Copper for July 17, 2025.

Technical Analysis of Copper

Copper Daily Chart Insights

• Stochastic Oscillator: The indicator has entered overbought levels above 80, indicating that recent upward momentum has become overextended and the market faces increased vulnerability to profit-taking or sideways consolidation. The oscillator’s slight downward turn reinforces this cautious near-term outlook, though overbought conditions alone do not ensure an immediate reversal.
• Key support area: A breakdown below the minor support at 5.4200 would serve as an initial warning of a more significant pullback. Such a breach would probably trigger a move toward the major support zone between 5.1360 – 5.2150. The overall uptrend would continue to hold as long as price remains above critical support levels, especially the medium-term moving average near 4.9000.

Copper 2-hour Chart Analysis

• Bullish bias: After the explosive rally, the price has moved into a consolidation phase, currently trading within a relatively narrow horizontal range. The price behavior typically represents the market “absorbing” previous gains while accumulating energy for the next substantial move. The present outlook remains neutral to cautiously bullish, with the market preparing for a potential breakout.
• Breakout scenarios: A confirmed 2-hour close above the range resistance at ~5.6580 would indicate the end of the consolidation period and signal resumption of the uptrend. The first target would be the spike high at ~5.7855, with potential for additional new highs beyond that level. On the other hand, a breakdown below the critical support confluence at ~5.4455 would signal a significant warning. A confirmed 2-hour close beneath the level would suggest downside resolution of the consolidation. The move would likely target at 5.3885, with potential for further decline toward the major support at ~5.0350.

Copper Pivot Indicator

• The current market state is neutral and consolidating. Price action remains extremely choppy and range-bound, reflecting significant indecision between buyers and sellers. The most prominent feature is a volatility squeeze, with price being compressed into an increasingly tight range.
• Bullish Outbreak: A sustained 30-minute close above the 5.4720 resistance zone would signal a breakout from the squeeze. This would be a bullish signal, suggesting the consolidation has resolved to the upside, with initial targets at ~5.5060 and 5.5400.
• Bearish Breakdown: A decisive 30-minute close below the 5.4400 major support confluence would be a significant bearish signal. This would confirm a breakdown from the descending triangle pattern, likely triggering a sharp move down to test the spike low at ~5.4040.

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