Copper Wire

Comex High Grade Copper Price Futures (HG) Technical Analysis – May 17, 2018 Forecast

Copper traded higher early in the session, but the industrial metal pared gains on Thursday as the U.S. Dollar hovered near a five-month high against the Euro and amid worries over slower demand in top copper user China.

At 1200 GMT, July Comex High Grade Copper is trading $3.0830, up $0.0125 or +0.41%.

Comex High Grade Copper
Daily July Comex High Grade Copper

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, there is no momentum. A trade through $3.1310 will signal a resumption of the uptrend.

The first sign of weakness will be a trade through $3.0345. The main trend will change to down on a move through $3.0140.

The price action is also being controlled by a pair of retracement levels.

The main range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to $3.0575 is controlling the near-term direction of the market.

The short-term retracement range is $3.2180 to $3.0140. Its retracement zone at $3.1160 to $3.1400 is acting like resistance. This zone stopped the rally earlier in the week.

Daily Swing Chart Technical Forecast

Based on the overnight price action and the current price at $3.0885, the direction of the copper market today is likely to be determined by trader reaction to the main 50% level at $3.0885.

A sustained move under $3.0885 will signal the presence of sellers. This could drive the market into the main Fibonacci level at $3.0575. If this price fails then look for the selling to extend into a pair of bottoms at $3.0345 and $3.0140.

A sustained move over $3.0885 will indicate the presence of buyers. This is a possible trigger point for an acceleration into a series of potential resistance levels at $3.1160, $3.1310, $3.1315 and $3.1401. The latter is the trigger point for another surge.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.