Comex High Grade Copper Price Futures (HG) Technical Analysis – Wall of Resistance at $3.0650 to $3.1190; Steep Drop Under $2.9040

Copper prices were essentially rangebound on Wednesday before closing lower. Traders primarily ignored the strength in the U.S. Dollar which should’ve had a negative impact on the dollar-denominated industrial metal as well as the volatile stock market which tends to weigh on investor risk appetite.

May Comex High Grade Copper futures settled at $2.9980, down 0.0025 or -0.08%.

End of the quarter position-squaring also kept a lid on prices as well as concerns that a trade war between China and the U.S. could have a negative impact on demand later in the year. Buyers are also fearing an economic slowdown in China.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $2.9375 will reaffirm the downtrend. This could trigger a further break into the September 22 main bottom at $2.9325 and the August 3 main bottom at $2.9040.

The main bottom at $2.9040 is a potential trigger point for an acceleration to the downside. The next major support target comes in at $2.6680.

The main range is $3.3335 to $2.9375. Its retracement zone is an upside target at $3.0680 to $3.1190.

The short-term range is $3.1920 to $2.9375. Its retracement zone is another upside target at $3.0650 to $3.0950.

Since the main trend is down, traders are likely to run into a wall of selling pressure between $3.0650 and $3.1190.

Daily Swing Chart Technical Forecast

Based on Wednesday’s close at $2.9980, the direction of the copper market early Thursday is likely to be determined by trader reaction to the minor top at $3.0240.

Taking out $3.0240 will change the minor trend to up. This could create the upside momentum needed to challenge the layers of potential resistance at $3.0650, $3.0680, $3.0950 and $3.1190. Since the main trend is down, watch for sellers on the first tests of these levels.

The inability to takeout $3.0240 and sustain the rally will signal the presence of sellers. This could trigger a retest of $2.9375, followed by $2.9325 and $2.9040. Look out to the downside if $2.9040 fails as support.