Comex High Grade Copper Price Futures (HG) Technical Analysis – Perfect Storm of Events Drives Copper to Two-Year High
September Comex High Grade Copper futures soared on Tuesday, boosted by strong technical momentum, signs of robust demand from top consumer China, tight supplies and a weak dollar. For bullish investors, it was basically driven higher by a perfect storm of events.
Technical Analysis
Monthly Analysis
From the top down, the monthly range is $3.6775 to $1.9830. Its retracement zone is $2.8305 to $3.0300. This zone is currently being tested.
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Today’s rally took out the February top at $2.8495. This put the market at a 2-year high with the next target the May 5, 2015 top at $2.9375.
Taking out $2.9375 could drive the market into the major Fibonacci level at $3.0300, followed by the downtrending Gann angle at $3.1475.
On the downside, the nearest support is the 50% level at $2.8305. The major monthly support angle comes in at $2.6450.
Weekly Analysis
The main trend is up on the weekly chart. Overcoming the swing top at $2.8495 has put the market on course for a test of the May 5, 2015 top at $2.9375.
The nearest support is the 50% level at $2.8305. The best support angle comes in at $2.7050.
Daily Analysis
The main trend is also up on the daily chart. The market is trading on the strong side of the major 50% level at $2.8305.
Overtaking the uptrending angle at $2.8510 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge the 2-year top at $2.9375.
If $2.8305 fails as support and sellers come in hard then look for a possible acceleration to the downside with the next target angle coming in at $2.7410.
This market is being driven by momentum and news and this trend will continue as long as buyers are willing to pay up in order to drive the shorts out of their positions.