Comex High Grade Copper Futures (HG) Technical Analysis – June 24, 2016 Forecast

September Comex High Grade Copper futures fell sharply on Friday in reaction to the UK’s decision to exit the European Union. The news triggered a strong rally by the U.S. Dollar which weakened dollar-denominated currencies like copper.

The main trend is up according to the daily swing chart. It turned up earlier in the week when a rally took out the 2.1480 main top. The trend will turn back to down on a trade through 2.0180.

The main range is 2.3060 to 2.0180. Its retracement zone at 2.1620 to 2.1960 was the primary upside target. This zone was tested and provided resistance earlier in the session when the market traded as high as 2.1785.

The new short-term range is 2.0180 to 2.1785. Its retracement zone at 2.0985 to 2.0795 was the primary downside target. This zone was tested when the market broke to 2.0700.

Today’s intraday range is 2.1785 to 2.0700. Its 50% level or pivot is 2.1245. This price may end up controlling the direction of the market today.

Based on the current price at 2.1140, the support is the 50% level at 2.0985, the Fib level at 2.0795 and the uptrending angle at 2.0730.

Taking out 2.0700 could drive the market into uptrending angles at 2.0455 and 2.0315. The latter is the last potential support angle before the 2.0180 main bottom.

On the upside, the first resistance is the short-term pivot at 2.1245. This is followed by an uptrending angle at 2.1280. Crossing to the strong side of this angle will put the market in a bullish position today and may create enough upside momentum to fuel a rally into the main 50% level at 2.1620, today’s high at 2.1785, a downtrending angle at 2.1960 and the main Fib level at 2.1960.

Watch the price action and read the order flow at 2.1245 today. Trader reaction to this pivot should determine the direction of the market the rest of the session.