LIVE MARKETS-Record skid leaves copper miners at a crossroads

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RECORD SKID LEAVES COPPER MINERS AT A CROSSROADS

Copper tumbled to its lowest level in nearly four months on Friday and is headed for a fifth straight weekly decline as investors grow increasingly uneasy about AI-related spending.

Sentiment toward the AI trade took another hit after Nvidia CEO Jensen Huang resigned on Thursday. Copper has been a key beneficiary of the AI boom due to its extensive use in electrification projects, power infrastructure and data centers.

The pressure is also evident in copper-related equities. The Global X Copper Miners ETF , which holds companies such as Teck Resources TECKb.TO, Southern Copper SCCO.N and Freeport-McMoRan FCX.N, is on track to extend a record weekly losing streak in LSEG data going back to April 2010.

COPX closed Thursday at $71.01 and will post a 12th straight weekly decline if it finishes Friday below $71.25. The selloff has pushed its weekly RSI down to 28.3, the most oversold reading since April 2025.

After nearly three months of relentless selling, the ETF appears ripe for a relief rally. The bigger question is whether any bounce marks the start of a recovery or merely a pause in the downtrend.

A key battle is developing near $70. The declining four-week moving average, now resistance near $71.85, is converging with the rising 80-week moving average, which has provided support since May 2025 and sits near $69.60. COPX has closed below its four-week average for 10 straight weeks.

If buyers regain control, a move back above the 38.2% retracement of the April 2025-January 2026 advance at $73.55 could pave the way for a more meaningful rebound. Beyond that, the next major hurdle sits at the 23.6% retracement near $83.65.

On the downside, a break below the early-November low at $69.96 and the 80-week moving average would keep the bearish trend intact. That would expose support at the March low of $68.49, followed by the $66.20-$65.38 area, which includes the October 2025 high and the 50% retracement. Beyond that, the 61.8% retracement and the November 2025 low come into focus in the $57.21-$56.93 zone.

(Terence Gabriel)

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