Comex High Grade Copper Price Futures (HG) Technical Analysis – Sustained Move Under $3.1020 Will Indicate Selling is Getting Stronger

Copper futures traded mostly lower last week as investors expressed concerns over the impact of the recent U.S. tariffs on steel and aluminum on the global economy. Traders were also worried about potential tariffs against China. A stronger U.S. Dollar and the prospects of more aggressive Fed rate hikes also pressured copper prices.

May Comex High Grade Copper futures settled at $3.1075, down $0.0285 or -0.91%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. However, momentum has been trending sideways to lower since the week-ending December 29. A trade through $3.0465 will change the main trend to down. This move could create enough downside momentum to trigger a break into the next main bottom at $2.9585.

The minor trend is down. A move through $3.0555 will reaffirm the downtrend. This could lead to a move into $3.0465. A trade through $3.1920 will change the minor trend to up and likely fuel a strong short-covering rally.

The main range is $2.9585 to $3.3335. Its retracement zone at $3.1460 to $3.1020 is acting like a pivot and controlling the longer-term direction of the market.

The short-term range is $3.0465 to $3.2905. Its 50% level or pivot at $3.1685 is also a resistance level.

Weekly Technical Forecast

Based on Friday’s close at $3.1075, the direction of the copper market this week is likely to be determined by trader reaction to the main Fibonacci level at $3.1020.

Holding $3.1020 will indicate the presence of buyers. This could generate the upside momentum needed to challenge a pair of 50% levels at $3.1460 and $3.1685. The market will begin to pick up strength on a sustained move over $3.1685 and likely breakout to the upside over $3.1920.

A sustained move under $3.1020 will signal the presence of sellers. This could trigger an acceleration into $3.0555, followed by $3.0465.

A move through $3.0465 will change the main trend to down and like fuel an acceleration into $2.9585 over the near-term.