Comex High Grade Copper Price Futures (HG) Technical Analysis – Direction This Week Determined By Trader Reaction to $3.2200

Copper futures settled lower last week as investors continued to react to the wall of long-term resistance at $3.3405 and $3.3580. Prices could continue to weaken if the U.S. Dollar rallies. This will lead to lower foreign demand for the dollar-denominated commodity.

Last week, March Comex High Grade Copper futures settled at $3.2295, down $0.0710 or -2.15%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through $3.3220 will signal a resumption of the uptrend. The rally will strengthen if buyers take out $3.3405 and $3.3580. The latter is a possible trigger point for an acceleration to the upside with $3.4440 the next major upside target.

The short-term range is $2.9430 to $3.3220. If the downside momentum continues then look for a possible break into its retracement zone at $3.1325 to $3.0880. Since the main trend is up, buyers are likely to show up on a test of this zone.

Weekly Technical Forecast

Based on last week’s close at $3.2295, the direction of the copper market this week is likely to be determined by trader reaction to the long-term uptrending Gann angle at $3.2200.

A sustained move over $3.2200 will signal the presence of buyers. This could create the upside momentum needed to challenge $3.3220, $3.3405 and $3.3580.

A sustained move under $3.2200 will indicate the presence of sellers. This could trigger a break into a steep uptrending Gann angle at $3.1430, followed closely by a short-term retracement zone at $3.1325 to $3.0880.

The copper market may be a little overbought at current price levels due to excessive hedge fund buying. A break may be needed to shake out some of the weaker longs and alleviate some of the upside pressure. Furthermore, investors may be looking for value at this time.