Comex High Grade Copper Price Futures (HG) Technical Analysis – Hits 2-Year High as Buyers Shrug-off Weak Chinese Trade Data

Bullish copper traders shrugged off weaker-than-expected Chinese trade data to drive September Comex High Grade Copper futures to their highest level since May

Chinese imports and exports both fell well short of forecasts last month, but this didn’t bother copper traders because they are being driven by upside technical momentum. Additionally, the overall trade was still a healthy 8.8 percent although this was the slowest pace this year.

Swing Chart Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the previous top at $2.9200. The main trend will change to down on a trade through $2.8600.

The buying was also strong enough to briefly exceed the May 15, 2015 main top at $2.9375. If buyers can establish a support base at this price then copper may eventually make a run at the major long-term Fibonacci level at $3.0300.

There are some negatives to watch for, however. With the market at a multi-year high, it is vulnerable to a closing price reversal top. This may not mean the trend is changing to down, but it could indicate that it’s run out of buyers.

Another sign that the selling may be greater than the buying or that buy stops rather than new buying triggered the rally through $2.9375 will be a pullback through this level. A break back under $2.9200 will also signal the same.

Gann Angle Analysis

The nearest uptrending Gann Angle support comes in at $2.9200. This is significant because it is the same price as the previous man top. If it fails then we could see a break into uptrending angles at $2.8900 and $2.8750.

The angle at $2.8750 is the last potential support angle before the $2.8600 main bottom.