Comex High Grade Copper Price Futures (HG) Technical Analysis – Rally Extends Over $3.1510, Weakens Under $3.1110

Copper posted another higher-high on Monday and is currently in a position to close higher for 9^th consecutive session. A weaker U.S. Dollar is once again helping to generate foreign demand. The dollar is under pressure due to concerns over tax reform.

At 1931 GMT, March Comex High Grade Copper futures are trading $3.1445, up $0.0100 or +0.32%.

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $3.1985 will change the main trend to up. If buyers can take out this level with conviction then look for a possible surge into the October 16 main top at $3.2790.

The prolonged rally in terms of price and time has put the market in the window of time for a potentially bearish closing price reversal top. Given the nature of the copper market, this rally is likely to end with a surge to the upside on low volume.

The short-term range is $3.1985 to $2.9430. Its retracement zone is $3.0710 to $3.1010. Momentum shifted to the upside when the copper market crossed to the strong side of this zone. This zone is new support.

The main range is $3.2790 to $2.9430. The market is currently straddling its retracement zone at $3.1110 to $3.1510. Since the trend is down, sellers may show up on a test of this zone. Overcoming the upper or Fibonacci level at $3.1510 will indicate the buying is getting stronger. A sustained move under $3.1110 will signal the return of sellers.

Basically, look for a bullish tone on a sustained move over $3.1510 and for a bearish tone to develop on a sustained move under $3.1110.