Comex High Grade Copper Price Futures (HG) Technical Analysis – Trading on Weakside of Major Retracement Zone at $3.1505 to $3.1955

Copper futures posted a volatile two-sided trade last week, but still managed to close higher for the week. The market was supported by forecasts of increased demand and a possible supply deficit later in the year. However, gains were limited by a stronger U.S. Dollar which hurt demand for the dollar-denominated copper market and renewed geopolitical tensions which threatened future demand.

July Comex High Grade Copper futures settled at $3.0775, up $0.0140 or +0.46%.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum is trending higher with the formation of a secondary higher bottom.

A trade through $3.2180 will change the main trend to up. A move through $3.0140 will signal a resumption of the downtrend.

The main range is $3.3420 to $2.9585. Its retracement zone at $3.1505 to $3.1955 is acting like resistance which controlling the longer-term direction of the market.

The short-term range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to $3.0575 is acting likely support. It is controlling the market on the downside.

The combination of the two retracement zones is creating a choppy, two-sided trade.

Weekly Swing Chart Technical Forecast

Based on last week’s price action, the direction of the July Comex High Grade Copper futures market is likely to be determined by trader reaction to the short-term 50% level at $3.0885.

A sustained move under $3.0885 will indicate the presence of sellers. This could lead to a quick test of $3.0575. If this level fails then look for a sharp break into the main bottom at $3.0140. This is a potential trigger point for an acceleration into the major support at $2.9585.

A sustained move over $3.0885 will signal the presence of buyers. This could trigger an acceleration to the upside with $3.1505 to $3.1955 the next likely target zone. Taking out $3.1955 will indicate the buying is getting stronger. A move through $3.2180 will change the main trend to up.