July Comex High Grade Copper futures are trading higher shortly before the regular session opening. The market is rebounding after earlier weakness The
July Comex High Grade Copper futures are trading higher shortly before the regular session opening. The market is rebounding after earlier weakness
The main trend is down according to the daily swing chart. The main trend will turn up on a trade through 2.1390.
The main range is 2.3055 to 2.0380. Its retracement zone at 2.1720 to 2.2035 is the primary upside target.
The short-term range is 2.1390 to 2.0380. Its retracement zone at 2.1005 to 2.0885 is the new support.
Based on yesterday’s close at 2.1025 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the short-term Fibonacci level at 2.1005 and the short-term uptrending angle at 2.0980.
A sustained move over 2.1005 will indicate the presence of buyers. This could create enough upside momentum to challenge yesterday’s high at 2.1250. Taking out this high will put the market in a position to challenge the main top at 2.1390.
Taking out 2.1390 will change the main trend to up and could fuel an acceleration into the main 50% level at 2.1720.
A sustained move under 2.1005 will signal the presence of sellers. This could trigger a break into the short-term 50% level at 2.0885. This is followed by a long-term downtrending angle at 2.0840, followed closely by an uptrending angle at 2.0680.
The way of least resistance is to the upside but the market needs a catalyst to drive it higher. This would likely be a sharply lower U.S. Dollar. Today’s U.S. preliminary GDP report, due out at 1230 GMT, could move the dollar and consequently copper prices. Traders should watch this report because it is likely to generate some volatility.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.