Comex High Grade Copper Price Futures (HG) Technical Analysis – New Contract High or Pullback to $3.1955?

Supply concerns drove July Comex High Grade Copper prices to nearly a new high for the year last week. The market was also underpinned by a weaker U.S. Dollar which drove up foreign demand for the dollar-denominated asset. This week will be all about whether the upside momentum can continue. We should also find out if last week’s move was driven by short-covering or aggressive buying.

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. The trend turned up last week when buyers took out the main top at $3.2180. The trend will turn down on a trade through $3.0100. However, this type of vertical movement tends to end with a closing price reversal top.

The main range is $3.3420 to $2.9585. Its retracement zone is $3.1505 to $3.1955. This zone is new support. Holding above this zone is also contributing to the market’s strong upside bias.

The short-term range is $3.0100 to $3.3155. Its retracement zone is the primary downside target at $3.1630 to $3.1265. This zone actually surrounds the main 50% level at $3.1505.

Weekly Swing Chart Technical Forecast

The direction of the July Comex High Grade Copper market this week will be determined by trader reaction to Friday’s close at $3.3000.

If bullish traders can sustain a move over $3.3000 and create enough upside momentum to overtake $3.3155 then we could see a rally into the February 28 top at $3.2420. The daily chart is wide open over this price with $3.5000 the next likely target.

The inability to sustain a rally over $3.3000 will signal the presence of sellers. If it’s just profit-taking causing the selling then we could see a short-term break. If the selling is news driven by the end of the strike in Chile, then the market could drop even further.

The first downside target is the main Fibonacci level at $3.1955. Since the main trend is up, we could see a technical bounce on the first test of this level.

If $3.1955 fails as support then look for the selling to extend into $3.1630 to $3.1505, followed by $3.1265.