Comex High Grade Copper Price Futures (HG) Technical Analysis – Move Through $3.0885 Will Indicate Buying is Getting Stronger

Copper finished marginally higher on Wednesday after two losing sessions. The nside move suggests investor indecision and impending volatility. Prices were supported by encouraging Chinese home sales data and capped by a stronger dollar, which hurt demand for the dollar-denominated asset.

At 2027 GMT, July Comex Copper is trading $3.0715, up $0.0144 or +0.47%.

In China, new home prices rose in April with an increasing number of smaller Chinese cities driving broader growth, pointing to resilience in a key industry for industrial metals.

In the U.S., Industrial output in the United States rose in April, helped by an acceleration in manufacturing and mining, indicating that the economy was gathering momentum.

The U.S. Dollar jumped to its highest level in 2018, driven by another rise in U.S. Treasury yields. The move capped gains in commodities priced in the U.S. currency.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $3.0345 will be a sign of weakness. The trend will change to down on a trade through $3.0140.

A move through $3.1310 will signal a resumption of the uptrend.

The main range is $2.9585 to $3.2180. Its retracement zone is $3.0885 to $3.0575. The market has been straddling this zone for the entire month. Based on this price action, we can say that the direction of the market over the near-term will be determined by trader reaction to this zone.

The short-term range is $3.2180 to $3.0140. Its retracement zone at $3.1160 to $3.1400 is the upside target. It is acting like resistance, having stopped the rally at $3.1310 earlier in the week.

Daily Swing Chart Technical Forecast

Based on Wednesday’s price action, the direction of the July Comex High Grade Copper market is likely to be determined by trader reaction to the main Fibonacci level at $3.0575.

A sustained move over $3.0575 will indicate the presence of buyers. If this generates enough upside momentum then look for a drive into $3.0885. This is a possible trigger point for an acceleration into a series of retracement levels at $3.1160, $3.1310, $3.1315 and $3.1400.