Comex High Grade Copper Futures (HG) Technical Analysis – July 26, 2016 Forecast

September Comex High Grade Copper futures are trading lower shortly before the regular session opening. The market is rapidly approaching a short-term retracement zone that could attract buyers.

The main trend is up according to the daily swing chart. However, momentum has been to the downside since July 13.

The short-term range is $2.1165 to $2.2775. Its retracement zone at $2.1970 to $2.1780 is the first downside target. Since the main trend is up, buyers may step in on a test of this zone.

The main range is $2.0180 to $2.2775. Its retracement zone at $2.1475 to $2.1170 is the next potential downside target should the selling pressure continue.

A short-term uptrending angle comes in at $2.1780 to form a support cluster with the short-term Fib at the same price. This is the best downside target today.

Base on the current price at $2.2060, the direction of the market after the regular session opening is likely to be determined by trader reaction to the 50% level at $2.1970.

Holding above $2.1970 will indicate the presence of buyers. This could trigger a reversal to the upside with the first target a long-term downtrending angle at $2.2250.

A sustained move under $2.1970 will signal the presence of sellers. The daily chart is open to the downside with the next targets the support cluster at $2.1780 and a long-term uptrending angle at $2.1765.

An upside bias could begin to develop if $2.1970 holds as support. Look for the downside bias to continue if this 50% level fails.