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James Hyerczyk
Daily March Comex High Grade Copper
Daily March Comex High Grade Copper

March Comex High Grade Copper futures took out yesterday’s low earlier in the session, but quickly rebounded from 2.0740. Although the market is still lower for the session, the slight difference in the lows suggests that perhaps the selling has been exhausted. This could lead to the start of a short-covering rally.

Today’s session marks the tenth day down from the 2.3695 main top. This puts copper in the window of time for a potentially bullish closing price reversal bottom. Since we’ve already made a lower-low, all we are waiting for is a close back above yesterday’s close at 2.1115 to complete the formation. Therefore, this number is the most important level of the day.

Daily March Comex High Grade Copper

A sustained move over 2.1115 will signal that the buying is getting stronger. It may only be short-covering or profit-taking, but that’s all it may take to create the bottom we are looking for. We’re not looking for a change in trend, but the start of a meaningful 2 to 3 day rally that could lead to a 50% retracement of the break from 2.3695.

A sustained move under 2.1115 will indicate that the market is not ready to rally and that more work has to be done on the downside. One potential target is 2.0550. This is followed by the psychological 2.000 level.

The nearest resistance is a steep downtrending angle at 2.1695.

Watch the price action and read the order flow at 2.1115 today. Trader reaction to this number will tell us whether the shorts are still in control or if they are getting ready to book profits. 

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