Comex High Grade Copper Price Futures (HG) Technical Analysis – Trump’s Infrastructure Spending Plan Should Be Supportive

A stronger dollar helped drive March Comex High Grade Copper futures lower on Monday as prices continued to consolidate inside a pair of retracement zones.

Copper traders will be paying close attention to President Donald Trump’s first State of the Union address on Tuesday night at 9:00 PM Eastern (0200 GMT) because he is expected to talk about his infrastructure spending plan. This should send positive signals into the copper market and should send prices sharply higher because of expectations of increased demand.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, recent price action indicates that momentum may be shifting to the upside. The main trend will turn up on a trade through $3.2765.

A move through $3.1080 will signal a resumption of the downtrend.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0880 is major support. This zone stopped the selling last week at $3.1080.

The intermediate range is $3.3220 to $3.1080. Its retracement zone at $3.2150 to $3.2405 is the resistance zone. This area has stopped the market four sessions in a row.

The short-term range is $3.1080 to $3.2580. Its retracement zone at $3.1830 to $3.1655 is support.

Currently, copper is trading between a pair of 50% levels at $3.2150 and $3.1830. This indicates investor indecision and impending volatility.

Daily Technical Forecast

Based on Monday’s close at $3.1940 and the early price action, trader reaction to an uptrending Gann angle at $3.2080 will determine the direction of the copper market today.

A sustained move over $3.2080 will indicate the presence of buyers. This could lead to a fast test of a resistance cluster at $3.2150 to $3.2170. This is the trigger point for a surge into $3.2405.

Taking out the Fib level at $3.2405 could generate the upside momentum needed to test a serious of resistance levels at $3.2580, $3.2695 and $3.2765.

A sustained move under $3.2080 will signal the presence of sellers. This could trigger an acceleration to the downside with potential targets at $3.1830, $3.1655 and $3.1580.

Trump’s speech could trigger a huge rally if he talks about aggressive spending on infrastructure.