Comex High Grade Copper Price Futures (HG) Technical Analysis – Gann Angle at $3.1460 Controlling Direction

December Comex High Grade Copper futures traded lower on Wednesday for a second-day as investors took profits after the steep run-up earlier in the week. A firmer U.S. Dollar also contributed to the weakness because it made dollar-denominated copper more expensive for foreign traders.

Despite the weakness, traders believe that China’s underlying demand for copper will remain stable and solid. The copper market could receive support later this week after China’s Communist Party Congress makes its policy announcements.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is drifting a little lower after Monday’s spike to the upside. A trade through $3.2595 will signal a resumption of the uptrend. This could trigger an extension of the rally into the December 26, 2013 main top at $3.2930.

The main range is $2.9260 to $3.2595. If the selling pressure intensifies then its retracement zone at $3.0930 to $3.0535 will become the primary downside target.

The key uptrending Gann angle to watch comes in at $3.1460. This angle, moving up at a rate of .02 per day, has been guiding the market higher since the $2.9260 main bottom on October 3. This angle is very important to the structure of the market.

Holding the Gann angle will indicate that buyers are coming in to defend the trend.

A failure to hold $2.9260 will indicate that sellers are taking control of the market. This could trigger the start of a steep break into the retracement zone at $3.0930 to $3.0535.