Copper is trading just under 2% off its all-time highs, testing the $6.890 level where sellers have previously pushed prices back from the area.
On the 5-hour chart, spot copper settled around $6.7758, with the upper Bollinger Band marking $6.8506. A bearish wick formed at $6.8412 after buyers attempted to challenge highs, suggesting resistance in the immediate range.
The relative strength index registered 64.7, approaching the overbought threshold of 70 — a reading that often precedes short-term pullbacks but does not guarantee them.
Support on the Ichimoku cloud sits between $6.618 and $6.6625, providing a buffer zone should selling pressure increase.
Traders are eyeing two competing scenarios. A sustained break above $6.890 would open the path toward $7.000 and potentially $7.150. Conversely, a reversal near the $6.850–$6.890 zone could send copper back toward $6.620, then $6.520 and $6.400.
A no-trade zone has been identified between $6.700 and $6.800, described as a choppy range marked by indecision. Aggressive traders watching for a breakout above $6.890 could target the $7.000–$7.150 stretch, while bearish plays near $6.850 offer a risk-reward setup of up to 9:1 against targets at $6.620, $6.520 and $6.400.
The next decisive move hinges on whether price can hold above resistance or whether the double-top warning near $6.890 becomes the more relevant signal.
