Yahoo Finance Comex High Grade Copper Price Futures (HG) Technical Analysis – Trader Reaction to Fib Level at $3.0535 Will Set the Tone Today
December Comex High Grade Copper futures are trading flat early Thursday after hitting its lowest level since October 9 on Wednesday. Prices continued to slide yesterday as data from China stoked fears of a slowdown in the world’s top commodities consumer.
Data released on Tuesday showed China’s economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.
Prices could fall further if investors continue to move money out of riskier assets which typically has a negative impact on commodities. However, if investors are dumping copper because they believe the economy in China is slowing then the current short-term retracement could evolve into a longer-term setback.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down on a trade through $3.0585 on Tuesday. A move through $3.1365 will change the main trend to up again.
A trade through $3.0340 will reaffirm the downtrend. If the selling pressure increases, we could see an eventual break into the cluster of bottoms at $2.9260 to $2.8795.
The main range is $2.9260 to $3.2595. Its retracement zone is $3.0930 to $3.0535 is currently being tested. Trader reaction to this zone will determine the longer-term direction of the market.
The short-term range is $3.2595 to $3.0340. Its retracement zone at $3.1470 to $3.1735 is the primary upside target.
Daily Technical Forecast
Based on the early price action, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at $3.0535.
A sustained move over $3.0535 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the main 50% level at $3.0930.
A sustained move under $3.0535 will signal the presence of sellers. This could trigger a retest of yesterday’s low at $3.0340. This is the trigger point for an acceleration to the downside.
This article was originally posted on FX Empire
