Comex copper price analysis as crucial data shapes the market

Comex copper price is still under selling pressure despite the subtle rebounding recorded in  recent sessions. The curbed gains come after the speculative buying frenzy that bolstered it to $6.57 a pound in late January 2026.  While the softening demand conditions are weighing on the red metal, a weaker US dollar is offering some support. At the time of writing, Comex copper price was trading at $5.98 as the bulls defended the support along the months-long bullish trendline.

Copper price trades sideways on shifting dynamics 

Supply concerns had copper price rallying for months; trading at an all-time high in late January 2026. However, the supply woes were not in tandem with the demand growth rate. While the long-term demand outlook remains solid, economic uncertainties are weighing on the red metal. Considered a bellwether of the global economy, the instabilities are clouding the short-term demand outlook.

For instance, data released on Wednesday showed that China’s consumer inflation increased at a lower-than-expected rate in January. Meanwhile, the producer prices pointed to persistent deflationary pressure as the market await a stronger stimulus from the country’s federal government. As the leading importer and consumer of industrial metals, China’s struggling property market and weaker domestic consumer demand and confidence are also weighing on the copper market.

Even so, a decline in the US dollar is offering some support to copper price. Earlier on Thursday, the dollar index traded sideways after dropping to a level last recorded on 30th January in the previous session. With signs of weakness in the US economy, investors are betting on further interest rate cuts by the Federal Reserve. 

In addition to the mixed retail sales and US payrolls data published in the course of the week, investors are keen on the inflation data on Friday. Similar to other dollar-priced assets, a decline in the greenback makes copper less expensive for buyers holding foreign currencies. 

Comex copper price technical analysis

The US copper price has been rather choppy in recent sessions as the market reacts to softening demand conditions. Late last week, it dropped to a one-week low before reversing some of those losses. 

This heightened volatility has continued into the current week. The red metal has entered into a phase of consolidation as investors weigh the fundamental factors. At the time of writing, the Comex copper price was hovering above a crucial trendline at $5.98 per pound. It has been trading horizontally since the start of the week. Notably, that bullish trendline has shaped its price movements since late July 2025. 

Following the tariff-driven plunge on 30th July 2025, the trendline controlled its rebound till December 2025. However, further gains bolstered the red metal past that indicator, which now served as a steady support for the asset since early February 2026. 

In the short term, Comex copper price may remain range-bound as the bulls strive to defend the support along the months-long bullish trendline. Indeed, the key technical indicators justify this thesis. 

At 52, the relative strength index (RSI) is pointing to a period of consolidation as investors weigh on the key fundamentals. Besides, it is hovering around the short-term 25-day EMA while remaining steady above the medium-term 50-day MA. 

In the immediate term, the range between $5.85 and $6.10 will be worth watching. With a further pullback, the bulls will be keen on defending the lower support at $5.74. On the flipside, a rebound will likely curb the gains at $6.20.