Comex High Grade Copper Price Futures (HG) Technical Analysis – Steep Drop Coming if $3.0425 Fails as Support

Weak industrial data from top industrial metals consumer China weighed on copper prices on Tuesday. May Comex High Grade Copper was also pressured by a drop in Aluminum prices and a stronger U.S. Dollar which helped make dollar-denominated copper more expensive for foreign buyers.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since March 26. A trade through $3.1920 will change the main trend to up.

The minor trend is up. A move through $3.1475 will signal a resumption of the uptrend. The minor trend will change to down on a trade though $2.9700.

The price action is also being manipulated by a series of retracement levels.

The main range is $3.2905 to $2.9375. Its retracement zone at $3.1140 to $3.1557 is acting like resistance.

The intermediate range is $3.1920 to $2.9375. Copper is currently straddling its retracement zone at $3.0650 to $3.0950.

The short-term range is $2.9375 to $3.1475. Its 50% level or pivot is $3.0425. This level has proved to be strong support the last four sessions.

Daily Swing Chart Technical Forecast

Based on the early trade at $3.0800, the direction of the May Comex High Grade Copper market the rest of the session is likely to be determined by trader reaction to the Fibonacci level at $3.0950 and the 50% level at $3.0650.

A sustained move over 3.0950 will give copper an upside bias into the close. This could trigger a further rally into $3.1140. This is the trigger point for an acceleration to the upside with the next targets coming in at $3.1475 and $3.1560.

A sustained move under $3.0650 will give copper a downside bias into the close. This could trigger a quick break into $3.0425. This is the trigger point for the start of a steep break.

Rollover to the July Comex High Grade Futures Contract on Wednesday.