Advertisement
Advertisement

Comex High Grade Copper Price Futures (HG) Technical Analysis – Move Through $2.6675 Will Be Bullish

By:
James Hyerczyk
Published: Jun 26, 2017, 01:58 UTC

September Comex High Grade Copper futures closed higher last week and in a position to continue the move if the buying is strong enough to take out the

Copper Smelting

September Comex High Grade Copper futures closed higher last week and in a position to continue the move if the buying is strong enough to take out the key retracement zone that has stopped rallies the last three weeks.

Copper was supported last week by a weaker U.S. Dollar which drove up foreign demand, reports of a supply deficit, and a stronger performance in China’s stock market, a sign that the economy may be recovering. The surge in copper prices was triggered late in the week by strong manufacturing data which drew the attention of bullish traders.

The daily chart is a bit noisy, but the picture is clearer on the weekly chart.

Comex High Grade Copper
Daily September Comex High Grade Copper

Technical Analysis

The main trend is up according to the weekly swing chart. If the buying continues then the next main target is the swing top at $2.7425. A trade through $2.5290 will change the main trend to down. This could drive the market into the next main bottom at $2.4850.

The short-term range is $2.8495 to $2.4850. The key resistance is its retracement zone at $2.6675 to $2.7105, or more specifically, the 50% level at $2.6675. This level has stopped the rallies the last three weeks.

The main range is $2.0900 to $2.8495. Its retracement zone at $2.4700 to $2.3800 is the primary downside target and the major support zone.

Forecast

Based on Friday’s close at $2.6345 and last week’s price action, the direction of the copper market this week is going to be determined by trader reaction to the short-term 50% level at $2.6675.

The first sign of strength will be overcoming the downtrending angle at $2.6595. This should generate enough upside momentum to test the 50% level at $2.6675. This price is also the trigger price for an acceleration into the short-term Fibonacci level at $2.7105.

Taking out $2.7105 could also lead to further upside action with potential targets the main top at $2.7425 and the downtrending angle at $2.7545.

A failure to overcome the angle at $2.6595 will signal the presence of sellers. This could lead to a break into the first short-term support angle at $2.6250, followed by another short-term support angle at $2.5550. This is the last potential support angle before the $2.5290 main bottom.

The next major support angle comes in at $2.5000. A break under this angle will likely lead to a test of the major retracement zone at $2.4700 to $2.3800.

If the fundamentals are right then we should see buyers make a run at trying to takeout $2.6675 to $2.7105 this week.

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