Comex High Grade Copper Price Futures (HG) Technical Analysis – April 25, 2018 Forecast

Copper prices are trading higher shortly before the New York opening as the market recovers from an early session setback. The price action has been choppy this week due to conflicting news events centering on U.S. sanctions. Traders have also reacted to rising U.S. interest rates, a stronger U.S. Dollar which tends to reduce foreign demand and a drop in demand for higher risk assets.

At 1030 GMT, July Comex High Grade Copper is trading $3.1705, up 0.0065 or +0.21%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, the market has been struggling to sustain the rally since reaching a top on April 19 at $3.2180, the same day the trend changed to up. This suggests the last phase of the rally was fueled by short-covering rather than aggressive buying.

In order to sustain the rally on a move through $3.2180, new buyers are going to have to come in to create enough upside momentum to challenge a pair of main tops at $3.2810 and $3.3040.

A trade through $3.2180 will reaffirm the uptrend. A move through $3.0985 will change the main trend to down.

The main range is $3.3040 to $2.9585. Its 50% level or pivot is $3.1315. Trading above this pivot is helping to give the market an upside bias. Falling back below this pivot could shift momentum to the downside.

The intermediate range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to $3.0575 is the primary downside target and potential support.

The short-term range is $3.2180 to $3.0985. Its retracement zone at $3.1585 to $3.1725 has been providing resistance all week.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the copper market today is likely to be determined by trader reaction to the short-term retracement zone at $3.1585 to $3.1725.

A sustained move over $3.1725 will signal the presence of buyers. This move could create the upside momentum needed to challenge $3.2180. Overtaking this level will reaffirm the uptrend and could launch an acceleration to the upside.

A sustained move under $3.1585 will indicate the presence of sellers. This could trigger a move into the main bottom at $3.0985. If this price fails, the trend will change to down, but the market could run into support at $3.9885 to $3.0575, the intermediate retracement zone.