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Comex High Grade Copper Price Futures (HG) Technical Analysis – February 1, 2018 Forecast

By:
James Hyerczyk
Published: Feb 1, 2018, 08:56 UTC

Based on the early price action, it looks as if copper will turn bullish on a sustained move over $3.2070 and bearish on a sustained move under $3.1180.

Thin Copper Wire

March Comex High Grade Copper futures are trading flat and inside yesterday’s range. The market is also stuck between a pair of retracement zone while trading inside a triangle chart pattern. All of this indicates investor indecision and impending volatility. Investors should start preparing for a major breakout.

We still not sure if we’re going to see a move in the direction of the downtrend, or a counter-trend rally. Fundamentally, President Trump’s plan to rebuild the country’s infrastructure is supportive, however, I think investors want to see which way the dollar is going to move before committing to a direction.

Comex High Grade Copper
Daily March Comex High Grade Copper

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $3.1080 will signal a resumption of the downtrend. The trend will turn up on a move through $3.2765.

The main trend is $3.3220 to $3.1080. Its retracement zone is $3.2150 to $3.2405. This has been resistance.

The short-term range is $3.1080 to $3.2580. Its retracement zone at $3.1830 to $3.1650 has been acting like support.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0880 stopped the selling last week at $3.1080.

Daily Technical Forecast

Based on the early price action, it looks as if copper will turn bullish on a sustained move over $3.2070 and bearish on a sustained move under $3.1180.

These price are the top and the bottom, respectively, of the triangle chart pattern. We want to play the triangle breakout because the market is nearing its vortex which usually means volatility is coming.

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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