Comex High Grade Copper Price Futures (HG) Technical Analysis – Stuck Between Pair of Retracement Zones; Needs Major News

March Comex High Grade Copper futures posted a two-sided trade on Wednesday before closing slightly better for the session. Buyers supported the market early after President Trump said last night in his State of the Union address that he was going to ask Congress for $1.5 trillion for his infrastructure plan.

Dollar-denominated copper weakened after the U.S. Dollar rose in response to the hawkish tone in the U.S. Federal Reserve’s monetary policy statement.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a trade through $3.2745. A move through $3.1080 will signal a resumption of the downtrend.

The market is caught between a pair of retracement zones which are holding it in a range. This indicates investor indecision and impending volatility.

On the upside, the resistance zone is $3.2150 to $3.2405. On the downside, the support zone is $3.1830 to $3.1655.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0880 stopped the price slide last week at $3.1080.

Daily Technical Forecast

Based on Wednesday’s close at $3.2010 and the early price action, the direction of the copper market today is likely to be determined by trader reaction to the downtrending Gann angle at $3.2070.

A sustained move over $3.2070 will indicate the presence of buyers. This could lead to a quick move into $3.2150 to $3.2405.The Fibonacci level at $3.2405 is the trigger point for an acceleration to the upside with nearby targets coming in at $3.2580, $3.2645 and $3.2765.

A sustained move under $3.2070 will signal the presence of sellers. The first target is a support cluster at $3.1830 to $3.1780. This is followed by $3.1655.

Taking out $3.1655 is likely to trigger an acceleration into a pair of uptrending Gann angles at $3.1430 and $3.1380.