Comex High Grade Copper Price Futures (HG) Technical Analysis –

December Comex High Grade Copper has clawed back to unchanged after an early session setback. The selling was in response to Friday’s closing price reversal top. The chart pattern was confirmed after sellers took out Friday’s low at $3.0180.

The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of the closing price reversal chart pattern. The subsequent follow-through selling on Monday confirmed the chart pattern.

The confirmation of the chart pattern doesn’t mean the trend is changing to down, but it could lead to a short-term retracement.

The main range is $3.1785 to $2.8940. Its retracement zone is $3.0365 to $3.0700. This zone provided resistance on Friday when aggressive counter-trend sellers came in to stop the rally.

Sellers are trying to stop the rally in an effort to form a secondary lower top. Buyers are going to try to take out this zone in an effort to trigger an acceleration to the upside.

The new short-term range is $2.9260 to $3.0560. If the selling continues then look for a move into its retracement zone at $2.9910 to $2.9760. Since the main trend is up, buyers are likely come in on the first test of this zone. They are going to try to form a potentially bullish secondary higher bottom.

The volume is extremely light so I don’t expect to see much movement into the close. However, overcoming 3.0365 late in the session may indicate the presence of buyers.