Comex High Grade Copper Price Futures (HG) Technical Analysis – Having Trouble Taking Out Long-Term Tops

March Comex High Grade Copper futures closed slightly higher on Thursday in a relatively volatile session. The two-sided price action in the U.S. Dollar may have influenced copper’s movement.

There weren’t any major news events on Thursday with most traders focusing on technically overbought conditions and on whether the hedge funds will continue to buy at such lofty levels after an almost month long rally in December.

The recent price action suggests investors are deciding whether to buy strength or wait for a pullback into a value zone.

The main trend is up according to the daily swing chart. The recent three day break has made $3.3220 a new main top. A trade through this level will signal a resumption of the uptrend.

Buyers are still facing a wall of resistance from $3.3055 to $3.3580 so any rally is likely to be layered. The buying is going to have to be pretty strong to take out these levels.

Thursday’s price action made $3.2365 a new minor bottom. A trade through this level will indicate the selling is getting stronger. If the volume comes in above average on the move then we could see an acceleration to the downside.

The main range is $2.9430 to $3.3220. If the selling pressure continues then we could see an eventual break into its retracement zone at $3.1325 to $3.0880.

The short-term range is $3.3220 to $3.2365. Its retracement zone is $3.2795 to $3.2895. This zone was tested and rejected on Thursday. This could be the first sign that a secondary lower top is forming. Overcoming this zone will indicate that momentum is shifting back to the upside.

Copper is at a critical point on the chart. Buyers have to come in to make $3.2365 a new main bottom, or the selling could start to increase with $3.1325 the minimum near-term target.