Comex High Grade Copper Price Futures (HG) Technical Analysis – April 6, 2018 Forecast

May Comex High Grade Copper futures are trading lower shortly before the regular session opening. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

Traders are likely confused about how to play the market ahead of today’s U.S. Non-Farm Payrolls report and after President Trump announced he may be considering another $100 billion in tariffs against China.

The stronger U.S. Dollar may also be weighing on demand. A stronger dollar tends to make dollar-denominated copper a less-desirable asset for foreign buyers.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a move through $3.1920. A trade through $2.9375 will signal a resumption of the downtrend.

The minor trend is up. A trade through $3.0880 will signal a resumption of the uptrend. A trade through $2.9700 then $2.9685 will change the minor trend to down.

The main range is $3.1920 to $2.9375. Its retracement zone at $3.0650 to $3.0950 is the primary upside target. It is also controlling the near-term direction of the market.

The short-term range is $2.9375 to $3.0880. Its 50% level or pivot is $3.0130.

Daily Swing Chart Technical Forecast

Based on the early price action, it looks like the direction of the market today will be determined by trader reaction to $3.0650 and $3.0130.

Look for a sideways trade if the market stays inside $3.0650 to $3.0130.

Look for an upside bias on a sustained move over $3.0648. This could generate the upside momentum needed to challenge $3.0880 then $3.0950. The latter is a possible trigger point for an acceleration to the upside.

A downside bias is likely to develop on a sustained move under $3.0130. If this move creates enough downside momentum, we could see a drive into $2.9700 then 2.9685. This is followed by another bottom at $2.9375 and a pair of major long-term bottoms at $2.9325 and $2.9040.