LME Copper is facing resistance at around 13,400. Momentum is slowing down, which might indicate a short-term pause, according to Société Générale’s FX analysts. The daily MACD, once at multi-year highs, is now below its trigger line, showing less upward momentum. Copper may consolidate between the recent low near 12,300 and the high of 13,400. If it breaks above 13,400, it could signal that the upward trend is continuing. FXStreet provides insights from journalists who gather information from market experts. It’s essential to do your own research before investing, as there are various risks involved. The information from FXStreet and its authors is not a recommendation to buy or sell assets. Always verify facts independently, as FXStreet and the authors are not responsible for any errors or losses related to the information provided. Currently, the rally in LME Copper is pausing after hitting a key level around $13,400. Technical indicators, such as the daily MACD, suggest that the upward push is fading. This follows a strong increase from the $9,500 range seen throughout much of 2025. In the upcoming weeks, the market is expected to move sideways between the recent low of $12,300 and the high of $13,400. This range suggests low-volatility strategies might work well, like selling out-of-the-money call and put options. For example, an iron condor could be set up to profit while the price stays within this range. This consolidation ties in with recent economic data, as China’s manufacturing PMI for December 2025 was a softer-than-expected 50.1, hinting at a slight slowdown in industrial demand. Meanwhile, supply remains tight, with LME copper inventories close to multi-year lows at just under 60,000 tonnes. The price increase last year was also driven by extended labor strikes at major Chilean mines during the third quarter of 2025, and their effects are still present. Traders should set alerts for a close above $13,400, as this would confirm that the bullish trend is back and make long call spreads appealing. On the other hand, a drop below the $12,300 level could signal a deeper correction. Such a bearish move might be quickened by a global risk-off sentiment that has recently pushed gold prices near $4,900. Implied volatility on copper options has begun to decline from the highs seen during the sharp rally in late 2025. This situation is favorable for option sellers, who can earn premiums due to anticipated low movement. Selling strangles could be particularly effective, benefiting from both the sideways price movement and the ongoing decrease in volatility.

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