Commodities Radar: After rising 62% in 2025, flat copper trading shows loss of momentum in 2026. Is this a dip or a trend reversal?

Domestic copper prices fell by almost one percentage point on Tuesday to touch the day’s low of Rs 1,288.90 per kg, amid mixed global trends, as traders looked for triggers to make their next move in the base metal.The January copper contracts were trading at Rs 1,292.10 around 3 pm on the MCX, down by Rs 10, even as their COMEX peers traded strongly. Meanwhile, COMEX prices were trading around $5.8545, up 0.40%. Three-month copper contracts on the LME traded at $12,855 per tonne, down more than 1%.

Copper was the best performer among base metals last year, rising more than 41% in London and 33% in Shanghai in a record rally.On the MCX, performance was even better: 62% in 2025, but momentum has been broken so far this year. The metal has remained flat so far in 2026.

Commenting on the current trends, Ajit Mishra, Senior Vice President Research at Religare Broking, said the red metal is witnessing an increase in volatility as profit bookings have increased after the sharp price spikes.

“The base metal has undergone a correction in the last two weeks but has found buyers at every support level. The copper market in January 2026 is characterized by extreme volatility after record highs,” Mishra said.

The upward movement is mainly due to structural supply shortages, in addition to a significant improvement in demand from the AI ​​and green energy sectors. However, he emphasized that fundamentals remain unchanged and maintained a positive outlook for the remaining days of this month.

Technical outlook

Deciphering the technical charts, the Religare analyst said that copper prices have seen a noticeable rise from late 2025 to early 2026. “The market witnessed a pullback in the last few weeks without disrupting the medium to long-term trend. Strong technical support is at Rs 1,230 to Rs 1,250, and a deeper corrective dip could find a bottom near Rs 1,180, which is unlikely in the short term appears given the tight supply conditions,” said Mishra. said.

Copper trading strategy

Copper’s recovery last week from the low of Rs 1,231.30 pushed prices above Rs 1,300. Currently, the base metal is trading close to this level. The analyst advised traders to wait for a moderate correction and, depending on stability above the region of Rs 1,290 to Rs 1,295, resume long positions with a stop loss below Rs 1,270 and targets of Rs 1,330 to Rs 1,340.

However, he clarified that this transaction only applies to the expiry date of the January series.

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(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)