Yahoo Finance Comex High Grade Copper Price Futures (HG) Technical Analysis – Stronger Dollar Could Drive Copper into $3.1685
May Comex High Grade Copper futures are trading lower at the mid-session. The catalysts behind the selling pressure are the rising U.S. Dollar and low volume due to the Chinese New Year.
Daily Technical Analysis
The main trend is up according to the daily swing chart. It turned up late last week when the rally took out the previous main top at $3.2775. A trade though $3.2905 will signal a resumption of the uptrend. This could trigger a further move into the December 18 main top at $3.3335.
The short-term range is $3.0465 to $3.2905. If the selling pressure continues then look for an eventual move into its retracement zone at $3.1685 to $3.1395. Since the main trend is up, buyers are likely to show up on a test of this zone.
Daily Technical Forecast
Based on the current price action, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the steep downtrending Gann angle at $3.2105.
A sustained move under $3.2105 will indicate the selling is getting stronger. This could trigger a further break into the steep uptrending Gann angle at $3.1865. We could see a technical bounce on the first test of this angle, but if it fails then look for the selling to extend into at least $3.1685.
A sustained move over $3.2105 will signal the presence of buyers. This could trigger an acceleration to the upside with the next target angle coming in at $3.2505.
If the dollar continues to strengthen then we should see a test of the main retracement zone.
This article was originally posted on FX Empire
