Comex High Grade Copper Price Futures (HG) Technical Analysis – April 26, 2018 Forecast

Copper prices are trading lower in London and that is dragging down the New York market. The market is trading lower for the week, but the price action has been erratic. Traders seem to be taking their direction from other base metal markets especially aluminum. Furthermore, the stronger dollar is making it expensive to buy copper.

At 1126 GMT, July Comex High Grade Copper is trading $3.1285, down $0.0290 or -0.91%.

Traders are saying that barring any further sudden announcements from U.S. President Trump that affect metals markets, “trading price levels should start to return to natural levels, with the logical exception of physical aluminum premiums”, Malcolm Freeman, CEO of Kingdom Futures, wrote in a note.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum has shifted to the downside.

A trade through $3.0985 will change the main trend to down. This could trigger the start of a steep sell-off since the next main bottom doesn’t come in until $2.9585.

A move through $3.2180 will signal a resumption of the uptrend with a pair of tops at $3.2810 and $3.3040 the next likely targets.

The market is currently trading on the weak side of a major retracement zone at $3.1505 to $3.1955. This is also giving the market a downside bias. Treat this area like resistance.

The main range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to $3.0575 is the primary downside target.

Daily Technical Forecast

The early trade suggests a downside bias may be developing. The direction of the market is likely to be determined by trader reaction to the major 50% level at $3.1505.

A sustained move under $3.1505 will indicate the presence of sellers. Crossing to the weak side of downtrending Gann angles at $3.1395 and $3.1180 will indicate the selling is getting stronger. This could create the momentum needed to take out $3.0985 and change the main trend to down.

Be careful selling weakness under $3.0985 because of the retracement zone at $3.0885 to $3.0575 and the uptrending Gann angle at $3.0685.

A sustained move over $3.1505 will signal the presence of buyers. This could lead to a test of the downtrending Gann angle at $3.1680. This angle was tested earlier today. Overtaking this angle will indicate the buying is getting stronger.