Comex High Grade Copper Price Futures (HG) Technical Analysis – Bullish Over $3.2405, Bearish Under $3.2150

March Comex High Grade Copper futures surged on Wednesday despite another large delivery into LME warehouses. Contributing to the rally was the inability to follow-through to the downside following Tuesday’s steep sell-off, a successful test of a major retracement area and an extremely weaker U.S. Dollar.

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. However, Tuesday’s rally changed momentum to the upside.

A trade through $3.2745 will change the main trend to up. A move through 3.1080 will signal a resumption of the downtrend.

The main range is $2.9430 to $3.3220. Its retracement zone is $3.1325 to $3.0880. This zone represents value. On Tuesday, the market reached a low at $3.1080. This was its lowest low since December 15.

The market held the Fibonacci level at $3.0880 and accelerated to the upside when it crossed over to the bullish side of the 50% level at $3.1325.

The short-term range is $3.3220 to $3.1080. Its retracement zone is $3.2150 to $3.2405. This zone is the initial upside target. It is currently being tested. Trader reaction to this zone will determine the near-term direction of the market.

Daily Swing Chart Forecast

Based on the early price action, the direction of the market on Thursday is likely to be determined by trader reaction to the 50% level at $3.2150 and the 61.8% level at $3.2405.

Since the main trend is down, sellers are going to try to form a secondary lower top on a test of the retracement zone. A sustained move under $3.2150 will indicate the presence of sellers. If it’s strong enough, we could see a retest of $3.1325 to $3.0880.

Aggressive counter-trend buyers are going to try to take out the short-term retracement zone. They are going to try to drive the market through the Fibonacci level at $3.2405. This will then make $3.1080 a new main bottom while creating the upside momentum needed to take out $3.2745 and change the trend to up.