Comex High Grade Copper Price Futures (HG) Technical Analysis – Bullish Over $3.2405, Bearish Under $3.1655

March Comex High Grade Copper futures edged lower on Thursday after giving back all of its earlier gains. The price action was largely impacted by wild swings in the U.S. Dollar.

Early session weakness by the dollar underpinned prices early, but the copper market collapsed after the dollar rose after U.S. President Trump said he backed a stronger U.S. Dollar.

In other news, on-warrant copper stocks in LME-approved warehouses jumped by 24,825 tonnes to 253,400 tonnes on Thursday, surging 67 percent over the past week. Headline levels have climbed by 46 percent to 299,600 tonnes.

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. However, momentum has shifted to the upside.

A trade through $3.2765 will change the main trend to up. This could trigger a rally into a series of former tops ranging from $3.3055 to $3.3580. Inside this range is the December 28 main top at $3.3220.

A move through $3.1080 will change the main trend to down.

A series of retracement zones is also controlling the price action.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0880 is providing support. It stopped the selling pressure at $3.1080 earlier this week.

The intermediate range is $3.3220 to $3.1080. Its retracement zone at $3.2150 to $3.2405 is providing resistance. This zone is currently being tested.

The short-term range is $3.1080 to $3.2580. Its retracement zone at $3.1830 to $3.1655 is the first downside target. Aggressive counter-trend buyers may step in on a test of this zone in an effort to form a potentially bullish secondary higher bottom.

Daily Swing Chart Forecast

Based on the early price action, the direction of the copper market today is likely to be determined by trader reaction to the 50% level at $3.2150.

A sustained move under $3.2150 will indicate the presence of sellers with $3.1830 to $3.1655 the first target. The latter is the trigger point for a possible acceleration into $3.1325.

A sustained move over $3.2150 will signal the presence of buyers. This could trigger a move into $3.2505. Overtaking this level could lead to a test of the high at $3.2580 and the main top at $3.2745.