Comex High Grade Copper Price Futures (HG) Technical Analysis – March 6, 2018 Forecast

May Comex High Grade Copper futures are trading higher early Tuesday after posting a minor closing price reversal bottom on Monday. The market was under pressure early in the session after President Donald Trump said the United States would impose a tariff of 25 percent on steel imports and a 10 percent tariff on aluminum imports. Fear of a trade war led to the sell-off after a number of countries, including China and Canada criticized the move.

Copper rebounded to close higher on increased demand for higher risk assets and the hope that Trump would rescind the tariffs if a favorable NAFTA agreement is reached.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the minor reversal bottom may be a sign that momentum is getting ready to shift to the upside. Tuesday’s rally helped make $3.0955 a new minor bottom.

A trade through $3.0955 will signal a resumption of the downtrend with $3.0465 the next likely downside target.

The main range is $3.0465 to $3.2905. Its 50% level or pivot is $3.1685. This price is controlling the direction of the market.

The short-term range is $3.2905 to $3.0955. If the upside momentum continues to build then look for the rally to extend into its retracement zone at $3.1930 to $3.2160.

Daily Technical Forecast

Based on the early price action, the direction of the copper market today is likely to be determined by trader reaction to the uptrending Gann angle at $3.1265.

A sustained move over $3.1265 will signal the presence of buyers. If this move creates enough upside momentum, we could see a drive into $3.1685 and a downtrending Gann angle at $3.1805.

Overtaking $3.1805 will signal that the buying is getting stronger with the next target $3.1930.

Since the main trend is down, watch for sellers to reappear between $3.1930 and $3.2160.

A sustained move under $3.1265 will indicate the presence of sellers. This could trigger an acceleration to the downside with the next two targets yesterday’s low at $3.0955 and an uptrending Gann angle at $3.0865. The latter is the last potential support angle before the $3.0465 main bottom.