Advertisement
Advertisement

Comex High Grade Copper Price Futures (HG) Technical Analysis – March 8, 2018 Forecast

By:
James Hyerczyk
Published: Mar 8, 2018, 14:11 UTC

Based on the current price at $3.0995 and the earlier price action, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $3.0915.

Copper Scrap Wire

May Comex High Grade Copper futures spiked lower on Thursday after the European Central Bank hinted it would end its stimulus in September. The central bank kept interest rates unchanged. However, it appeared to drop its easing bias in a released statement. Until now, the ECB has stated that it stands ready to increase the level of bond purchases it makes in both duration and/or size, in case the economic outlook deteriorates in the Euro Zone.

But the ECB also removed the statement from its communication Thursday, indicating that stimulus in the region could come to an end in the near future.

Traders also continue to express worries over a potential global trade war curbing economic growth and metals demand.

Comex High Grade Copper
Daily May Comex High Grade Copper

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market is not in a position to change the main trend to up, but it is in the window of time to post a potentially bullish closing price reversal bottom.

The minor trend is also down. A trade through $3.1780 will change the minor trend to up.

The main range is $3.0465 to $3.2905. Its 50% level or pivot is $3.1685. Trading below the pivot is also giving the copper market a downside bias.

Daily Technical Forecast

Based on the current price at $3.0995 and the earlier price action, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $3.0915.

A sustained move over $3.0915 will indicate the presence of buyers. If this move generate enough upside momentum then we could see a rally back into another uptrending Gann angle at $3.1365. This is followed by a downtrending Gann angle at $3.1605. Since the main trend is down, look for sellers to show up on a test of these angles.

A sustained move under $3.0915 will signal the presence of sellers. This could trigger an acceleration into the next uptrending Gann angle at $3.0690. This is the last potential support angle before the $3.0465 main bottom.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement