Yahoo Finance Comex High Grade Copper Price Futures (HG) Technical Analysis – Trader Reaction to Pivot at $3.1760 Will Set the Tone This Week
December Comex High Grade Copper futures hit a three year high early last week before settling into a range. The market was underpinned by improving manufacturing profits in China that pointed to robust growth in the world’s top user of metals.
Copper drifted mostly sideways after the initial surge at the start of the week. The market showed almost no reaction to Chinese economic reports last week since the major reports came in as expected.
Chinese CPI met expectations with a reading of 1.6%. However, PPI exceeded the estimate with a reading of 6.9%. Quarterly GDP also met expectations with a reading of 6.8%.
Weekly Technical Analysis
The main trend is up according to the weekly swing chart. It was reaffirmed last week when buyers took out the previous main top set six-weeks ago at $3.1785. The trend will change to down on a trade through $2.8940.
The week finished with the market trading on the strong side of a major retracement zone at $3.0230 to $2.8250. This zone is new support.
The key area to overcome on the upside are a pair of three year tops at $3.2245 and $3.2415. These are potential trigger points for an acceleration to the upside.
Weekly Forecast
Based on Friday’s close at $3.1655 and last week’s price action, the direction of the copper market is likely to be determined by trader reaction to a long-term downtrending Gann angle at $3.1760.
A sustained move under $3.1760 will indicate the presence of sellers. This could trigger a break into a steep uptrending angle at $3.0940. This is followed by the major Fibonacci level at $3.0230 and a pair of uptrending angles at $2.9940 and $2.9825.
A sustained move over $3.1760 will signal the presence of buyers. This could trigger a rally into a wall of resistance layered at $3.2245, $3.2415 and $3.2595.
Last week’s high at $3.2595 is the trigger point for an acceleration to the upside with the next major targets coming in at $3.4210 and $3.4625. Overcoming the latter will put the market in an extremely bullish position.
This article was originally posted on FX Empire
