Comex High Grade Copper Price Futures (HG) Technical Analysis – Light Holiday Volume, Firm Dollar Limiting Gains

May Comex High Grade Copper futures settled slightly higher on Friday, but inside the previous day’s range. The inside move suggests investor indecision and impending volatility. Copper closed lower for the week, mostly pressured by a stronger U.S. Dollar.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $3.2905 will signal a resumption of the uptrend. A move through $3.1750 will indicate the return of sellers. This will also put the market in a position to shift momentum to the downside.

The main range is $3.0465 to $3.2905. Its retracement zone at $3.1685 to $3.1395 is the primary downside target. Last week’s low was $3.1750, just slightly above the zone.

The short-term range is $3.2905 to $3.1750. Its 50% level or pivot is $3.2330. This level was straddled on Friday, it appears to be controlling the near-term direction of the market.

Daily Technical Forecast

Based on Friday’s close at $3.2330, the direction of the market on Monday is likely to be determined by trader reaction to the 50% level or pivot at the same price.

A sustained move over $3.2330 will indicate the presence of buyers. This could fuel a rally into a downtrending Gann angle currently at $3.2505. Overtaking this angle could create the momentum needed to challenge a pair of downtrending Gann angles at $3.2705 and $3.2805. The latter is the last potential resistance angle before the $3.2905 main top.

A sustained move under $3.2330 will signal the presence of sellers. The first key support angle comes in at $3.2265. Crossing to the weak side of this angle will indicate the selling is getting stronger. Breaking to the bearish side of the steep downtrending Gann angle at $3.2105 could trigger an acceleration into a pair of downside targets at $3.1750 and $3.1685.

The chart pattern suggests the copper market wants to rally but is being held back by low volume due to the Lunar Holiday and a firmer U.S. Dollar. The holiday will be ending soon, which means the direction of the U.S. Dollar will dictate the movement in copper over the near-term.