Comex High Grade Copper Price Futures (HG) Technical Analysis – Looking for Spike Through $3.2790
March Comex High Grade Copper futures surged to their highest level since October 24 on Friday in thin pre-holiday trading on Friday. The week-ended with the industrial metal posting a 3 percent gain on signs of strong growth globally.
In other news, the global world refined copper market showed a 132,000 tonnes deficit in September, against a 94,000 tonne surplus in August, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
Daily Swing Chart Analysis
The main trend is up according to the daily swing chart. The trend turned up on Wednesday when copper powered through the previous main top at $3.1985. The upside momentum created by the rally has put the market in a position to challenge the October 16 main top at $3.2790.
The main range is $3.2790 to $2.9430. Its retracement zone at $3.1505 to $3.1110 is new support.
Despite being up 13 days from its last main bottom on December 5 at $2.9430, the rally is showing no signs of letting up. Nonetheless, it is in the “window of time” for a potentially bullish closing price reversal top. Given the nature of the copper market and the influence of the hedge fund buyers, this rally is likely to end with a huge spike to the upside.
I’m looking for buyers to take out the buy stops over $3.2790 then take profits. This would set up a possible start of a near-term correction.