Comex High Grade Copper Price Futures (HG) Technical Analysis – Supported by Grasberg Strike

July Comex High Grade Copper futures reached their highest level since May 3 on Thursday as investors ignored the stronger U.S. Dollar and a steep break in crude oil. The market was supported by supply concerns after news of further disruption at Indonesia’s Grasberg, one of the world’s biggest copper mines.

Freeport McMoRan, Inc. said on Thursday that mining and milling rates at its Grasberg mine in Papua, Indonesia have been affected by an extended strike, and a “large number” of about 4,000 absentee workers were deemed to have resigned.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher. A trade through $2.6945 will change the main trend to up. A move through $2.4725 will signal a resumption of the downtrend.

The major support is the zone between the December 30, 2016 close at $2.5180 and the December 27, 2016 main bottom at $2.4625.

The main range is $2.8400 to $2.4725. Its retracement zone at $2.6565 to $2.7000 is the primary upside target.

The short-term range is $2.6945 to $2.4725. The market is currently straddling its 50% level or pivot at $2.5835. This level is controlling the near-term direction of the market.

Forecast

Based on Thursday’s close at $2.5975, the direction of the copper market over the near-term is likely to be determined by trader reaction to pivot at $2.5835.

A sustained move over $2.5835 will signal the presence of buyers. The daily swing chart shows there is room to the upside with $2.6565 the first target.

A sustained move under $2.5835 will indicate the presence of sellers. This could start a steep sell-off since the first major target doesn’t come in until $2.5180.