Comex High Grade Copper Price Futures (HG) Technical Analysis – Could Be Headed To $3.1325

March Comex High Grade Copper futures are trading lower on Tuesday. The market started out higher, but sellers stopped the rally after the U.S. Dollar spiked to the upside. Copper is a dollar-denominated commodity so a stronger dollar tends to drive down foreign demand.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the market has been drifting lower since December 28. A trade through $3.3220 will signal a resumption of the uptrend.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0880 is the primary downside target and value area. Since the main trend is up, buyers are likely to show up on a test of this zone.

Daily Technical Forecast

Based on the current price action, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $3.2520. This angle acted like resistance earlier in the session. It is dropping at a rate of $0.01 per day from the $3.3220 top.

A sustained move under $3.3220 will signal the presence of sellers. If the selling pressure increases today, we could see a test of an uptrending Gann angle at $3.0580. Since the main trend is up, we could see a technical bounce on the first test of this level.

The angle at $3.0580 is also the trigger point for an acceleration to the downside with $3.1325 the next target.

Overtaking $3.3220 and sustaining the move will signal the return of buyers.