FX Empire

Comex High Grade Copper Price Futures (HG) Technical Analysis – Buyers Take a Breather After Surge to 3-Year High

James Hyerczyk
Updated

December Comex High Grade Copper futures fell from its three-year high on Tuesday on profit-taking driven by a stronger U.S. Dollar. Prices, however, were underpinned by renewed optimism over China’s economic outlook.

In other news, copper traders are saying that prices could continue to rise if China’s National Party Congress later this week unveils policies that extend the country’s industry reform to protect the environment.

Additionally, global miner Rio Tinto declared force majeure last Friday on shipments of refined copper from its Kennecott mine in the United States following the death of a worker.

Rio Tinto Kennecott comprises nearly 20 percent of U.S. copper production. The unit produced 156,500 tonnes of refined copper in 2016, about 63 percent of group output.

Comex High Grade Copper
Daily December Comex High Grade Copper

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, Tuesday’s inside move suggests investor indecision or perhaps momentum may be getting ready to shift to the downside. A trade through $3.2595 will signal a resumption of the uptrend.

The resistance appears to be the pair of former tops at $3.2245 and $3.2415. Overtaking this area with conviction could trigger an acceleration into the December 26, 2013 main top at $3.2930.

The main range is $2.9260 to $3.2595. If there is a sell-off then its retracement zone at $3.0930 to $3.0535 will become the primary downside target.

Daily Forecast

Tuesday’s price action indicates that buyers are respecting $3.2245 and $3.2415 as resistance. I don’t think that sellers are coming in per se, but the buying has definitely slowed.

This article was originally posted on FX Empire

More From FXEMPIRE:

and

Recommended Stories