Comex High Grade Copper Price Futures (HG) Technical Analysis – Weekly Trend Turned Down Last Week

May Comex High Grade Copper futures closed lower last week, finishing at $2.9930, down $0.1145 or -3.68%.

The main trend is down according to the weekly swing chart. The trend turned down last week when sellers took out the previous main bottom at $3.0465.

The short-term range is $2.5340 to $3.3335. Its 50% to 61.8% retracement zone at $2.9340 to $2.8395 is the primary downside target. We could see a technical bounce on the first test of this zone, fueled by aggressive counter-trend buyers.

The main range is $2.1345 to $3.3335. Its retracement zone at $2.7340 to $2.5925 is the next downside target. Inside this zone is the contract’s 50% level at $2.6680.

Given the downside momentum into the weekly close, we’re looking for the selling pressure to continue early this week with the first target a main bottom at $2.9585. Taking out this bottom will reaffirm the downtrend.

A move through $2.9585 could generate the downside momentum needed to challenge the 50% level at $2.9340. Look for a technical bounce on the first test of this level. If it fails then look for a further break into the main bottom at $2.9325. Taking out this bottom will be another confirmation of the downtrend.

The bottom at $2.9325 is also a possible trigger point for an acceleration into the short-term Fibonacci level at $2.8395.

Regaining the previous main bottom at $3.0465 will be the first indication that the buying is greater than the selling at current price levels.

The key area to watch this week is the potential support cluster at $2.9585 to $2.9325. Trader reaction to this area could determine the direction of the market this week.