Comex High Grade Copper Price Futures (HG) Technical Analysis – Setting Up for Possible Spike into $3.0710 to $3.1010

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James Hyerczyk

Updated Mon, Dec 11, 2017, 8:54 PM

March Comex High Grade copper futures inched higher for a fourth straight session on Monday, underpinned by a softer U.S. Dollar and data from top consumer China that indicated higher demand.

Position-squaring ahead of Wednesday’s Fed interest rate and monetary policy decisions weighed on the dollar, helping to drive up foreign demand for the dollar-denominated industrial metal. Last week’s report from China showing higher copper imports continued to be supportive.

In other news, speculators slashed their long positions on COMEX copper futures and options by around a third to 54,881 positions in the latest week, COMEX data showed.

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. However, prices remained supported by a series of main bottoms ranging from $2.9455 to $2.8990. A trade through last week’s low at 2.9430 will signal a resumption of the downtrend, but any selling is likely to be labored until $2.8990 is taken out.

The main range is $2.9135 to $3.2790. Its retracement zone at $3.0530 to $3.0960 is an upside target and potential resistance zone.

The short-term range is $3.1985 to $2.9430. Its retracement zone at $3.0710 to $3.1010 is also a potential upside target.

The short-term 50% level at $3.0710 falls inside the major retracement zone. The short-term Fibonacci level at $3.1010 forms a resistance cluster with the main 50% level at $3.0960. This is the best resistance area.

Since the main trend is down, I expect to see sellers return on a test of $3.0530 to $3.1010. Momentum will shift to the upside on a sustained move over $3.1010. The minor trend changes to up on a move through $3.1255. The main trend will change to up on a move through $3.1985.

This article was originally posted on FX Empire