Comex High Grade Copper Futures (HG) Technical Analysis …
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September Comex High Grade Copper futures consolidated for a second day on Friday, indicating impending volatility. Last week’s low at 3.1570 also held for a second day indicting that buyers may be coming in to defend a major retracement zone at $3.1525 to 3.1190.
Daily September Comex High Grade Copper
Fundamentally, low demand has been putting pressure on the market since early July. This scenario could change because of optimism over the outlook for China’s economy. News over the week-end that Pro-Russian Ukrainian separatists called for a truce could also lead to short-covering and aggressive counter-trend buying.
Technically, the main range is 3.0100 to 3.2945. Its retracement zone at 3.1525 to 3.1190 is a major support area, but buyers came in at 3.1675 on July 18 and 3.1570 on August 6 to defend this zone.
The new short-term range is 3.2945 to 3.1570. If the low holds then look for a short-covering rally into its retracement zone at 3.2260 to 3.2420 over the near-term.
The first upside target today is a downtrending angle from the 3.2945 top at 3.1945. This is followed by a long-term uptrending angle from the 3.0100 bottom at 3.2150. Overtaking this angle will put the market in a position to test the retracement zone target.
A downtrending angle from the 3.2945 top drops in at 3.2445. This forms a resistance cluster with the Fibonacci level at 3.2420, making it the best upside target. If this area is taken out with conviction then look for a rally into the next angle at 3.2695.
The main trend will turn up on the daily chart on a trade through 3.2625 with tops at 3.2790 and 3.2945 other potential targets.
On the downside, the major support is the retracement zone at 3.1525 to 3.1190 and an uptrending angle at 3.1125.
The two-day consolidation indicates impending volatility. The tone of the market today will likely be determined by trader reaction to the uptrending angle at 3.2150. Overtaking this angle will be a sign of strength.
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Comex High Grade Copper Futures (HG) Technical Analysis …
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