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Comex High Grade Copper Price Futures (HG) Technical Analysis – $3.0465 is Possible Trigger Point for Steep Drop

James Hyerczyk
Updated

In This Article:

Copper prices fell last week before rallying enough late in the week to settle slightly better. The volatile two-sided price action was fueled by the movement in the U.S. Dollar and uncertainty over President Trump’s tariffs on steel and aluminum.

May Comex High Grade Copper futures settled at $3.1360, up $0.0115 or +0.37%.

Comex High Grade Copper
Weekly May Comex High Grade Copper

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. However, momentum has been trending lower since the top at $3.335 the week-ending December 29.

A trade through the main bottom at $3.0465 will signal a resumption of the downtrend. If this move generates enough downside momentum, we could see an eventual test of the next main bottom at $2.9585.

The main range is $2.9585 to $3.3335. Its retracement zone is $3.1460 to $3.1020. The market has straddled this zone four out of five weeks. This zone is controlling the longer-term direction of the market.

The short-term range is $3.0465 to $3.2905. Its 50% level or pivot at $3.1685 provided resistance last week.

Weekly Technical Forecast

Based on last week’s close at $3.1360 and the price action, the direction of the copper market this week is likely to be determined by trader reaction to the main 50% level at $3.1460.

A sustained move under $3.1460 will indicate the presence of sellers. This could lead to a test of the main Fibonacci level at $3.1020. Last week, sellers took out this level, but quickly regained it into the close. If the selling pressure increases this week then we could see a move into $3.0465.

Look for a possible acceleration to the downside if $3.0465 fails as support. This could drive the market into $2.9585.

A sustained move over $3.1460 will signal the presence of buyers. This could drive the market into $3.1685. This price is a possible trigger point for an acceleration to the upside.

The direction of the dollar this week is likely to have a big influence on copper prices. The price action in the dollar will likely be dictated by the results of the U.S. consumer inflation report.

This article was originally posted on FX Empire

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