Yahoo Finance Comex High Grade Copper Price Futures (HG) Technical Analysis – In Position to Challenge Series of Main Tops
March Comex High Grade Copper futures are trading at their highest level since February 5. The catalysts behind the rally are a weaker U.S. Dollar and robust prospects for global growth.
Daily Technical Analysis
The main trend is down according to the daily swing chart, but momentum has shifted to the upside. A trade through $3.2575 will change the main trend to up. This could create the upside momentum needed to challenge the January 25 top at $3.2580 and the January 16 top at $3.2765. The latter is a possible trigger point for an acceleration into the December 28 main top at $3.3220.
The main range is $2.9430 to $3.3220. Its retracement zone is $3.1325 to $3.0880. Trading on the strong side of this zone is helping to give the market an upside bias.
Daily Technical Forecast
Based on the current price action, the direction of the copper market into the close will be determined by trader reaction to a downtrending Gann angle at $3.2395.
A sustained move over $3.2395 will indicate the buying is getting stronger. This could trigger a rally through the main tops and into the next downtrending Gann angle at $3.2810. This is the last angle before the $3.220 main top.
Even if the buying is strong enough to overcome $3.3220, buyers still face a wall of longer-term resistance at $3.3245, $3.3405 and $3.3580.
The inability to overcome $3.2395 will signal the presence of sellers. This could fuel a pullback into a steep uptrending Gann angle at $3.1860. If the trend is getting ready to turn higher, then this angle should hold as support. However, it is also the trigger point for a possible acceleration into $3.1325 to $3.1060.
Watch the price action and read the order flow at $3.2395 into the close. This should tell us if the buying or the selling is getting stronger and whether there is enough upside momentum to continue the move on Friday.
This article was originally posted on FX Empire
