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Comex High Grade Copper Price Futures (HG) Technical Analysis – Perfect Storm of Events Drives Copper to Two-Year High

By:
James Hyerczyk
Published: Jul 25, 2017, 21:50 UTC

September Comex High Grade Copper futures soared on Tuesday, boosted by strong technical momentum, signs of robust demand from top consumer China, tight

Thin Copper Wire

September Comex High Grade Copper futures soared on Tuesday, boosted by strong technical momentum, signs of robust demand from top consumer China, tight supplies and a weak dollar. For bullish investors, it was basically driven higher by a perfect storm of events.

Technical Analysis

Comex High Grade Copper
Monthly September Comex High Grade Copper

Monthly Analysis

From the top down, the monthly range is $3.6775 to $1.9830. Its retracement zone is $2.8305 to $3.0300. This zone is currently being tested.

Today’s rally took out the February top at $2.8495. This put the market at a 2-year high with the next target the May 5, 2015 top at $2.9375.

Taking out $2.9375 could drive the market into the major Fibonacci level at $3.0300, followed by the downtrending Gann angle at $3.1475.

On the downside, the nearest support is the 50% level at $2.8305. The major monthly support angle comes in at $2.6450.

Comex High Grade Copper
Weekly September Comex High Grade Copper

Weekly Analysis

The main trend is up on the weekly chart. Overcoming the swing top at $2.8495 has put the market on course for a test of the May 5, 2015 top at $2.9375.

The nearest support is the 50% level at $2.8305. The best support angle comes in at $2.7050.

Comex High Grade Copper
Daily September Comex High Grade Copper

Daily Analysis

The main trend is also up on the daily chart. The market is trading on the strong side of the major 50% level at $2.8305.

Overtaking the uptrending angle at $2.8510 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge the 2-year top at $2.9375.

If $2.8305 fails as support and sellers come in hard then look for a possible acceleration to the downside with the next target angle coming in at $2.7410.

This market is being driven by momentum and news and this trend will continue as long as buyers are willing to pay up in order to drive the shorts out of their positions.

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.

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