Comex High Grade Copper Price Futures (HG) Technical Analysis – Seven Days Down Could Lead to Reversal Up

March Comex High Grade Copper retreated on Monday for a sixth session since posting a multi-year high in late December. The dollar-denominated commodity hit a two-week low, weighed down by a stronger U.S. Dollar.

Sellers were also reacting to concerns about supply side growth with new mining projects coming online. In other news, copper speculators raised their net “long” or buy positions by 13, 604 contracts to 113,124 contracts in the week to January 2.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart, however, momentum is starting to shift to the downside. A trade through $3.3220 will signal a resumption of the uptrend. A move through $3.2205 will indicate the selling pressure is getting stronger.

Today is the 7^th day down from the main top. This puts copper in the window of time for a potentially bullish closing price reversal bottom. Bearish traders should be careful selling weakness.

The main range is $2.9430 to $3.220. Its retracement zone at $3.1325 to $3.0880 is the primary downside target. Since the main trend is up, buyers may show up on a test of this area.

The short-term range is $3.3220 to $3.2205. Its 50% level or pivot comes in at $3.2715.

The pivot is very important to the structure of the chart pattern. If sellers come in on a test of this level then a secondary lower top will form. This could lead to further downside pressure.

If the buying is strong enough to overtake $3.2715 then $3.2205 could become a main bottom. Buyers will then take a shot and overcoming the main top at $3.3220 to extend the uptrend.

Watch the price action and read the order flow on a test of $3.2205. If the selling is strong through this price then look for a possible acceleration to the downside. If the selling is weak then we could see a closing price reversal bottom.

A stronger U.S. Dollar will be bearish for copper.