Comex High Grade Copper Price Futures (HG) Technical Analysis – June 4, 2018 Forecast

A short-squeeze and a weaker U.S. Dollar are helping to drive up July Comex High Grade Copper futures shortly before the regular session opening on Monday. Investors don’t seem to be showing any concerns about a potential global trade war.

Buyers are also reacting a surge in Shanghai copper prices. They rallied to a six-week high, underpinned by a slightly softer U.S. Dollar and supply concerns amid wage negotiations at the world’s largest copper mine.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a move through $3.1485. The new main swing bottom is $3.0100.

The minor trend changed to up earlier today, shifting momentum to the upside.

The market is being supported by a 50% level at $3.0885 and a Fibonacci level at $3.0575.

On the upside, resistance points are a 50% level at $3.1140, a Fibonacci level at $3.1385 and a major 50% level at $3.1505.

Daily Technical Forecast

Based on the early price action and the current price at $3.1130, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the 50% level at $3.1140.

A sustained move under $3.1140 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to drive the market into a 50% level at $3.0885 or a steep uptrending Gann angle at $3.0700.

A sustained move over $3.1140 will signal the presence of buyers. The daily chart indicates there is room to the upside with potential targets coming in at the Fib level at $3.1385 and the long-term downtrending Gann angle at $3.1405. Since the main trend is down, sellers could come in on a test of the potential resistance cluster at $3.1385 to $3.1405.

Overtaking $3.1405 could trigger a spike into the main top at $3.1485. This is followed by a 50% level at $3.1505. This is the trigger point for an acceleration to the upside with $3.1795 a potential target.

With the market straddling a series of retracement levels for several weeks, it may be ripe for a breakout to the upside. If you buy earlier with the shift in momentum, you’ll be going against the main trend, but you’ll be in an early position to play the potential breakout over $3.1505.