Comex High Grade Copper Price Futures (HG) Technical Analysis – June 7, 2018 Forecast

Copper prices continue to rise on Thursday after spiking over 2 percent higher in New York on Thursday to their highest level since February 16. Prices were also strong in Shanghai and London, where it currently trades within striking distance of its 2018 high.

At 0600 GMT, July Comex High Grade Copper is trading $3.2670, up 0.0050 or +0.15%.

The catalysts behind the rally are a supply disruption in Chile and a weaker U.S. Dollar, which tends to drive up demand for dollar-denominated assets like copper.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Earlier today, the uptrend was reaffirmed when buyers took out the February 22 main top at $3.2810. This puts the market in a position to challenge the February 16 main top at $3.3040 and the December 28 main top at $3.3420.

The market is not close to turning the main trend to down, but it is nearing the window of time, when it could form a potentially bearish closing price reversal top. Since we are nearing a pair of major tops and the current rally is pretty steep in terms of price and time, profit-takers may start to show up.

Daily Swing Chart Technical Forecast

Based on the early momentum, buyers may take a run at $3.3040 today. We could see a technical bounce on the first test of this level. Overtaking it will indicate the buying is getting stronger with $3.3420 the next likely upside target.

A pullback under $3.2620 will be the first sign of weakness. This will indicate profit-taking. A steep sell-off could lead to a test of the former main top at $3.2180, followed by the major Fibonacci level at $3.1955.

A close under $3.2620 will form a closing price reversal top. This will indicate the selling is greater than the buying at current price levels. This could lead to the start of a 2 to 3 day correction.