Comex High Grade Copper Price Futures (HG) Technical Analysis – Approaching Major Resistance Zone at $3.3055 to $3.3580

March Comex High Grade Copper futures rallied to their highest level in over four years on Tuesday. The move was driven by a weaker U.S. Dollar which made dollar-denominated copper a more desirable asset for foreign currency holders. Speculators may be betting on increased demand from China and perhaps the U.S. if President Trump starts moving on his infrastructure plan.

In other news, large metals speculators sharply lifted their bullish positions in the Copper futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the market is rapidly approaching a possible wall of resistance from $3.3055 to $3.3580. A combination of overbought conditions and the series of resistance levels could stop this rally in its tracks. It may not lead to a change in trend, but it certainly will give some investors an excuse to book profits.

In addition to the series of resistance levels at $3.3055 and $3.3135, the market is in a position to test a long-term uptrending Gann angle at $3.3235. Crossing to the strong side of this angle will put the market in a bullish position.

A sustained move over $3.3235 should lead to a test of potential resistance levels at $3.3245, $3.3405 and the June 5, 2013 main top at $3.3580. This price is a possible trigger point for an acceleration into the March 24, 2013 main top at $3.4440.