Advertisement
Advertisement

Comex High Grade Copper Price Futures (HG) Technical Analysis – May 9, 2018 Forecast

By:
James Hyerczyk
Published: May 9, 2018, 06:46 UTC

Based on Tuesday’s close at $3.0590 and Wednesday’s early price action, the direction of the copper market today is likely to be determined by trader reaction to the main Fibonacci level at $3.0575.

Copper Scrap Wire

Copper futures plunged on Tuesday. The price action was primarily driven by a stronger U.S. Dollar which overshadowed bullish trade data from China. Copper prices rebounded late in the session, however, gains were limited with investors cautious after President Trump announced the United States pulled out of an international nuclear deal with Iran.

July Comex High Grade Copper finished the session at $3.0590, down $0.0200 or -0.65%.

Chinese imports and exports grew more strongly than expected in April and copper imports rose 2.8 percent from the previous month, implying healthy demand and pushing prices higher in early trading. But the rally in the dollar to a new 2018 high against a basket of major currencies, limited foreign demand for dollar-denominated copper.

Comex High Grade Copper
Daily July Comex High Grade Copper

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed on Tuesday when sellers took out the previous main bottom at $3.0195. A new main top was formed at $3.1215. A trade through this level will change the main trend to up.

The main range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to $3.0575 is acting like resistance.

The short-term range is $3.2180 to $3.0140. If there is a short-covering rally then its retracement zone at $3.1160 to $3.1400 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on Tuesday’s close at $3.0590 and Wednesday’s early price action, the direction of the copper market today is likely to be determined by trader reaction to the main Fibonacci level at $3.0575.

A sustained move under $3.0575 will indicate the presence of sellers. This could lead to a retest of yesterday’s low at $3.0140. Taking out this level will signal a resumption of the downtrend. This is also a potential trigger point for an acceleration to the downside with the next major target the March 26 main bottom at $2.9585.

Overcoming $3.0575 and sustaining the move will signal the return of buyers. This could drive the market into $3.0885. This is the last potential resistance level before the main top at $3.1215 and a series of retracement levels at $3.1160, $3.1315 and $3.1400.

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