Comex High Grade Copper Price Futures (HG) Technical Analysis – Needs to Clear $3.1485 to Trigger Acceleration to Upside

Copper was up for a second day on Tuesday as investors continued to respond to the somewhat favorable outcome of the trade talks between the United States and China last week-end. A weaker U.S. Dollar also helped drive up demand for the dollar-denominated asset. Expectations of increased demand and a projected supply shortage also helped provide support.

At 1823 GMT, July Comex High Grade Copper futures are trading at $3.1275, up $0.0290 or +0.94%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the previous top at $3.1310. The new swing bottom is $3.0345.

The main range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to 3.0575 is new support.

The short-term range is $3.2180 to $3.0140. Its retracement zone is $3.1160 to $3.1400. A major 50% level also comes in at $3.1315. Although the market broke out above this zone to $3.1485, the buying wasn’t strong enough to sustain the move. I think it’s safe to say that trader reaction to the retracement zone will determine the near-term direction of the market.

Daily Swing Chart Technical Forecast

Based on Tuesday’s price action, the direction of the copper market moving forward is likely to be determined by trader reaction to the Fibonacci level at $3.1400 and the 50% level at $3.1160.

A sustained move over $3.1400 will signal the presence of buyers. The rally will gain traction if $3.1485 is taken out with conviction. The daily chart indicates there is plenty of room to the upside over this level with potential targets coming in at $3.1890 and $3.2180.

A sustained move under $3.1160 will indicate the presence of sellers. This could trigger an acceleration into the major 50% level at $3.0885.