Comex High Grade Copper Price Futures (HG) Technical Analysis – Testing Critical Support at $3.0770 to $3.0230

December Comex High Grade Copper futures have been under pressure lately due to a decline in demand, part of a global sell-off in commodities. The move was fueled last week by a series of disappointing economic reports from China. The market was also reacting to expectations for a December rate hike by the Fed. Higher rates are good for the dollar and could make copper too expensive for foreign buyers.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. However, momentum has been trending lower since the week-ending October 20.

The main retracement zone at $3.0770 to $3.0230 is providing support. This zone is controlling the longer-term direction of the market.

If a short-term rally forms between $3.2595 and $3.0315 and momentum shifts to the upside, we could see a rally into its retracement zone at $3.1455 to $3.1725.

Weekly Technical Forecast

Based on last week’s close at $3.0670, the direction of the copper market this week is likely to be determined by trader reaction to the 50% level at $3.0770.

A sustained move over $3.0770 will indicate the presence of buyers. If this move begins to gain traction then the next upside targets become $3.1455 and $3.1595.

A sustained move under $3.0770 will signal the presence of sellers. This could lead to a labored break with the initial targets uptrending Gann angles at $3.0740 and $3.0635.

Crossing to the weak side of a downtrending angle at $3.0595 will indicate the selling pressure is increasing with the next targets $3.0315 and $3.0230.

Taking out $3.0230 could trigger an acceleration into the next uptrending angle at $2.9840.