Comex High Grade Copper Price Futures (HG) Technical Analysis – Buyers Trying to Form Potentially Bullish Secondary Higher Bottom

Copper prices had a volatile week with traders reacting to the movement in the U.S. Dollar and the meeting between U.S. and China trade representatives. Additionally, huge price swings in other industrial metals such as aluminum, zinc and nickel also contributed to the market’s two-sided trade.

July Comex High Grade Copper finished the week at $3.0855, up $0.0160 or +0.52%.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart. A trade through $2.9585 will signal a resumption of the downtrend. A trade through $3.2180 will change the main trend to up.

A pair of retracement zones are also influencing the price action.

The main range is $3.3040 to $2.9585. Its retracement zone at $3.1315 to $3.1720 is controlling the upside action.

The short-term range is $2.9585 to $3.2180. Its retracement zone at $3.0885 to $3.0575 is controlling the downside action.

Weekly Swing Chart Technical Forecast

Based on last week’s close at $3.0855 and last week’s price action, the direction of the copper market this week is likely to be determined by trader reaction to the short-term 50% level at $3.0885.

A sustained move under $3.0885 will indicate the presence of sellers. This could drive the market into the short-term Fibonacci level at $3.0575, followed by last week’s low at $3.0195.

The weekly chart indicates there is plenty of room to the downside under $3.0195 with the next major downside target the main bottom at $2.9585.

A sustained move over $3.0885 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to continue into the main 50% level at $3.1315. Since the main trend is down, look for a technical bounce on the first test of this level.

Overtaking $3.1315 will indicate the buying is getting stronger. This could drive the market into the Fib level at $3.1720. Once again, sellers could come in on a test of this level. Overtaking the Fib could lead to a change in trend on a breakout over $3.2180.