Selloffs in AI Stocks Spill Over into Industrial Metals

Copper fell 2.59% to 6.3735 in 24 hours despite an RSI14 reading of 20.3 placing it in oversold territory, and is trading below its SMA20/SMA50 averages. MACD sitting below its signal line and in negative territory confirms weak short-term momentum. Selling in AI stocks spilling over into industrial metals may weigh on copper, reflecting deteriorating risk appetite and demand concerns. While oversold conditions set the stage for short-term rebound buying, trend indicators point to continued downside risk. I therefore expect a moderately bearish bias over the 1-3 day outlook, though I keep confidence at a moderate level given the oversold condition.

Aluminum is trading at 3041.8, notably below its 20-day and 50-day simple moving averages (SMA20 and SMA50), confirming a weak short-term trend. The RSI is around 42 in neutral-to-bearish territory and remains below the MACD signal line, indicating negative momentum. Spillover from selling in AI stocks into industrial metals could highlight deteriorating risk appetite and demand concerns, putting pressure on aluminum. The 1.7% decline over the past 24 hours supports this negative bias. However, since the news does not contain a direct supply-demand shock, the impact is expected to remain limited and volatile; the 1-3 day outlook is slightly bearish.