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Comex High Grade Copper Price Futures (HG) Technical Analysis – Bullish Over $3.0930, Bearish Under $3.0535

By:
James Hyerczyk
Published: Nov 20, 2017, 04:52 UTC

December Comex High Grade Copper rebounded on Friday to close higher after hitting its lowest level since October 9. The price action was likely fueled by

Copper High Grade

December Comex High Grade Copper rebounded on Friday to close higher after hitting its lowest level since October 9. The price action was likely fueled by oversold conditions. Fundamentally, the drop in prices last week was part of a major liquidation in all commodities. Some of it is related to expectations of a drop in demand from China. Expectations of rising global interest rates in the U.S., Euro Zone, the U.K. and Canada are also behind the selling pressure.

The main trend is down according to the daily swing chart. A trade through $3.0315 will signal a resumption of the downtrend. The daily chart is wide open to the downside with the next major bottom coming in at $2.9260.

A move through $3.1365 will change the main trend to up.

Comex High Grade Copper
Daily December Comex High Grade Copper

The main range is $2.9260 to $3.2595. Its retracement zone is $3.0930 to $3.0535. This zone is controlling the longer-term direction of this market. After crossing to the weak side of this zone, copper closed inside it, suggesting trader indecision and the presence of counter-trend buyers.

Comex High Grade Copper (Close-Up)
Daily December Comex High Grade Copper (Close-Up)

Based on Friday’s close at $3.0670, the direction of the copper market on Monday is likely to be determined by trader reaction to the Fib level at $3.0535.

A sustained move over $3.0535 will indicate the presence of buyers, or perhaps a let up in the selling pressure. If enough upside momentum is generated by the move then look for the rally to extend into the 50% level at $3.0930. This is level is a possible trigger point for an acceleration into $3.1365 and $3.1455.

A sustained move under $3.0535 will signal the presence of sellers. This could lead to a retest of last week’s low at $3.0315. The daily chart opens up to the downside under $3.0315 with the next major targets $2.9260 and $2.9150.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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