Comex High Grade Copper Price Futures (HG) Technical Analysis – Stronger Dollar Could Drive Market into $3.1325 to $3.0880

March Comex High Grade Copper futures are down for a third day on Wednesday amid investor profit-taking.

A rise in supply out of South America also dragged down prices. Chile’s National Statistics Institute reported late last year that the country’s copper production rose 4.8% year-on-year in November, Commerzbank analysts said in a note.

A renovated concentrator plant at Escondida—the world’s largest mine—was a factor in that rise, Commerzbank said, adding that Chilean copper commission Cochilco has also said that new capacity at Escondida would see production continue to grow.

The main trend is up according to the daily swing chart, but momentum may beginning to shift to the downside with the formation of a two-day top at $3.3220.

A trade through $3.3220 will signal a resumption of the uptrend. Copper is running into a slew of resistance levels from former tops from 2013, ranging from $3.3055 to $3.3580.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0880 is the primary downside target.

The trend is in no position to turn down at current price levels, however, the chart indicates there is nothing in the way to stop the market from reaching its retracement zone.

The first sign that a major top is forming and that the trend is getting ready to turn down will be the formation of an “M” top. This will take at least two days to form.