Trade Setup: Copper Nears 2 Factor Resistance On Chart

Copper has experienced significant volatility in 2025. After a powerful rally pushed prices from $4.00 to $5.40, the metal saw a sharp retracement to $4.06 before mounting a rebound to its current level around $4.75.

Technical analysis suggests this current move is nearing a critical resistance zone. The highs and lows observed in copper's price action since 2024 appear to form a parallel channel. The current bounce is approaching the 61.8% Fibonacci retracement level of this parallel structure. Adding to the significance, this Fibonacci level coincides with a prominent trend line connecting key prior pivot tops.

This confluence of a major Fibonacci retracement and a significant trend line creates a compelling two-factor resistance setup. This technical alignment signals to commodity traders a potential shorting opportunity around the $4.85 level. Look for the price to potentially test this resistance zone in the coming days, which could trigger significant selling pressure.