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Comex High Grade Copper Price Futures (HG) Technical Analysis – Set-Up for Test of Major Support Area

By:
James Hyerczyk
Published: Nov 12, 2017, 23:26 UTC

December Comex High Grade Copper futures finished lower last week, putting the market in a position to test a major support area that could trigger a

Copper High Grade

December Comex High Grade Copper futures finished lower last week, putting the market in a position to test a major support area that could trigger a steep sell-off if it fails to hold.

Traders are starting to liquidate their record long positions on concerns over low demand. Some are saying that the market overestimated demand from China in mid-October when copper prices surged to a multi-month high.

Although the market is set-up for a steep break, a weaker U.S. Dollar may slow some of the selling pressure.

Comex High Grade Copper
Weekly December Comex High Grade Copper

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through $3.2595 will signal a resumption of the uptrend. The main trend changes to down on a break through $2.8940.

The short-term range is $2.8940 to $3.2595. Its 50% level or pivot at $3.0770 is currently being tested.

The major retracement zone is the contract retracement zone. The contract range is $1.9850 to $3.6650. Its 50% to 61.8% retracement zone is $2.8250 to $3.0230.

Comex High Grade Copper Short-Term
Weekly December Comex High Grade Copper Short-Term

Weekly Technical Forecast

Based on last week’s close at $3.0760, the direction of the copper market this week is likely to be determined by trader reaction to the short-term pivot at $3.0770.

A sustained move over $3.0770 will indicate buyers are coming in to defend the trend. This could trigger a rally into a steep downtrending angle at $3.0995. Overtaking this angle will indicate the buying is getting stronger with potential target angles at $3.1795 and $3.2195. The latter is the last potential resistance angle before the $3.2595 main top.

A failure to hold $3.0770 will signal the presence of sellers. This could trigger a fast break into a pair of uptrending Gann angles at $3.0540 and $3.0425, followed by the major Fib level at $3.0230.

Since the trend is up, we could see buyers come in on a test of the support cluster at $3.0540 to $3.0230. However, look out to the downside if $3.0230 fails as support.

The weekly chart is wide open under $3.0230 so we could see an acceleration to the downside with $2.8940 the next major target, followed by $2.8250.

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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