Copper futures (HGCOP, July delivery) have been in a steady downtrend after peaking at the 2023 high of 4.3532 in mid-January. Moreover, the commodity experienced a huge downward spike in Thursday’s session, dropping beneath the 200-day simple moving average (SMA) and posting a fresh 2023 low.
This aggressive move to the downside is also reflected in the short-term oscillators. Specifically, the MACD dropped beneath its red signal line in the negative territory, while the RSI fell into its 30-oversold zone.
Should the recent decline extend, the price could challenge the 3.5890 hurdle before the November support of 3.5444 appears on the radar. Sliding beneath that floor, the commodity could then descend towards 3.3580, which served as strong support multiple times during late 2022. If that barricade fails, the October low of 3.3000 may provide downside protection.
Alternatively, bullish actions could propel the price back above its 200-day SMA to test the previous support of 3.8150, which could act as resistance in the future. Surpassing that level, the price may extend its advance towards the November high of 3.9570. Conquering this barricade, the bulls might aim for the April peak of 4.1834.
Overall, copper futures sliced aggressively through the 200-day SMA and posted a fresh 2023 low in today’s session. However, the price has reached oversold conditions, thus an upside correction should not be ruled out.
 have been in a steady downtrend after peaking at the 2023 high of 4.3532 in mid-January. Moreover, the commodity experienced a huge downward spike in Thursday’s session, dropping beneath the 200-day simple moving average (SMA) and posting a fresh 2023 low.){kind=link}