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Comex High Grade Copper Price Futures (HG) Technical Analysis – Pressured by Weaker Asian Stocks, Firm U.S. Dollar

By:
James Hyerczyk
Published: Feb 5, 2018, 06:25 UTC

Based on the early price action and last week’s close at $3.1875, the direction of the copper market today will likely be determined by trader reaction to the pivot at $3.2150.

Copper Wire

March Comex High Grade Copper futures are trading slightly better early Monday, mostly in reaction to a sideways trade in the U.S. Dollar. In London, copper steadied, but looked fragile as risk-off selling swept through Asia’s stock markets, threatening to pressure metals that had found near-term support.

In other news, hedge funds and money managers cut their net long position in COMEX copper futures and options in the week to January 30, U.S. Commodity Futures Trading Commission (CFTC) data showed.

Additionally, Asian share markets stumbled on Monday as fears of resurgent inflation battered bonds, toppled Wall Street from record highs and sparked speculation central banks globally might be forced to tighten more aggressively.

Comex High Grade Copper
Daily March Comex High Grade Copper

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. A trade through $3.2765 will change the main trend to up. A move through $3.1080 will signal a resumption of the downtrend.

The minor trend is up. A trade through $3.1520 will change the minor trend to down.

The short-term range is $3.3220 to $3.1080. Its 50% level or pivot is $3.2150. The market has been straddling this level for nearly a month. The close below the pivot on Friday is giving the market a downside bias. This pivot is essentially controlling the near-term direction of the market.

The main retracement zone and primary downside target is $3.1325 to $3.0880. This zone stopped the selling at $3.1080 on January 23.

Daily Swing Chart Forecast

Based on the early price action and last week’s close at $3.1875, the direction of the copper market today will likely be determined by trader reaction to the pivot at $3.2150.

A sustained move under $3.2150 will indicate the presence of sellers. If this generates enough downside momentum then look for the selling to extend into $3.1520 then $3.1325.

A sustained move over $3.2150 will signal the presence of buyers. This could trigger an acceleration to the upside with targets coming in at $3.2440 and $3.2580.

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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