Comex High Grade Copper Futures (HG) Technical Analysis – July 27, 2016 Forecast

September Comex High Grade Copper futures recovered nicely from early session weakness to post a potentially bullish closing price reversal bottom on Tuesday. A trade through $2.2315 will confirm the chart pattern, however, gains could be limited if the market doesn’t get help from the Fed.

If the Fed comes out with a dovish statement then copper could rally because this news would likely pressure the U.S. Dollar. A hawkish Fed will likely pressure dollar-denominated copper.

The main trend is up according to the daily swing chart. However, momentum has been to the downside since July 13. A trade through $2.2315 will turn momentum back up.

The intermediate range is $2.1165 to $2.2775. Its retracement zone is $2.1970 to $2.1780. This zone is the primary downside target today. A pair of angles passes through this zone at $2.1830 and $2.1815, making them valid downside targets also.

Based on Tuesday’s close at $2.2255, the direction of the market today is likely to be determined by trader reaction to the long-term downtrending angle at $2.2235.

A sustained move over $2.2235 will indicate the presence of buyers. This could drive the market into the short-term pivot at $2.2385. Overtaking this pivot will make an uptrending angle at $2.2465 the next target. Crossing to the strong side of this angle will put copper in a bullish position with $2.2640 the next target. This is the last potential resistance angle before the $2.2775 main top.

A sustained move under $2.2235 will signal the presence of sellers. The daily chart is open to the downside with the next potential targets $2.1990 and $2.1970. This is followed by $2.1830, $2.1815 and $2.1780.

Watch the price action and read the order flow at $2.2235 today. Trader reaction to this angle will tell us if the bulls are regaining control.