Comex High Grade Copper Price Futures (HG) Technical Analysis – April 19, 2018 Forecast

Copper prices are trading lower shortly before the regular session opening after giving up earlier gains. The move is likely being fueled by profit-taking following yesterday’s massive surge to the upside.

At 1030 GMT, July Comex High Grade Copper futures are trading $3.1780, down 0.0035 or -0.11%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the market is up 17 sessions from its last main bottom so a closing price reversal top is possible.

The daily chart shows there is plenty of room to the upside with the next target coming in at $3.2810.

The main range is $3.3420 to $2.9585. The market is currently trading inside its retracement zone at $3.1505 to $3.1955. Trader reaction to this zone will determine the longer-term direction of the market.

Daily Technical Forecast

Based on the early trade, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the Fibonacci level at $3.1955.

A sustained move over $3.1955 will indicate the buying is getting stronger. If this move creates enough upside momentum, we could see a drive into the next downtrending Gann angle at $3.2470. This is followed by the pair of tops at $3.2810 and $3.3040.

A sustained move under $3.1955 will signal the presence of sellers. This could lead to a test of the 50% level at $3.1505, followed by an uptrending Gann angle at $3.1285. The angle is important because it has been guiding the market higher since March 26.

A close below $3.1815 will form a potentially bearish closing price reversal top.