Comex High Grade Copper Price Futures (HG) Technical Analysis – February 8, 2018 Forecast

March Comex High Grade Copper futures plunged on Wednesday in reaction to a sharp rise in the U.S. Dollar and a resumption of stock market volatility. Traders also said that the fundamentals do not justify current price levels. Traders had been betting on expectations that global growth would drive demand higher.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed when sellers took out the January 23 bottom at $3.1080. The next major target bottom is $2.9430.

The main range is $2.9430 to $3.3220. Its retracement zone is $3.1325 to $3.0880. The market broke through this zone on Wednesday, solidifying the downside bias.

Daily Technical Forecast

Based on the current price at $3.0695 and the earlier price action, the direction of the copper market today is likely to be determined by trader reaction to the Fibonacci level at $3.0880.

A sustained move under $3.0880 will indicate the presence of sellers. This could drive the market into the uptrending Gann angle at $3.0530. We could see a technical bounce on a test of this angle, but if it fails we could see an acceleration into a longer-term uptrending Gann angle at $2.9980, followed by the main bottom at $2.9430.

A sustained move over $3.0880 will signal the return of buyers. This will indicate short-covering or profit-taking. If aggressive counter-trend buyers decide to enter the market we could see a move into the 50% level at $3.1325.