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

July Comex High Grade Copper is trading higher shortly before the U.S. opening despite the stronger U.S. Dollar. This is a sign of an oversold market. The funds want to get short because of the possibility of an interest rate hike in June, but they are not willing to enter at current price levels. We may need to see a near-term rally in order to set up the next shorting opportunity.

Technically, the main trend is down according to the daily swing chart. The main trend will turn up on a trade through 2.1390. A move through 2.0380 will signal a resumption of the downtrend.

The short-term range is 2.1390 to 2.0380. Its retracement zone at 2.0885 to 2.1005 is today’s upside target.

The main range is 2.3055 to 2.3080. Its retracement zone at 2.1720 to 2.2035 is the primary upside target.

Based on the current price at 2.0715, the direction of the market early in the session is likely to be determined by trader reaction to the long-term uptrending angle at 2.0695.

A sustained move over 2.0695 will indicate the presence of buyers. This could create enough upside momentum to challenge the downtrending angle at 2.0855. This is followed by a series of potential resistance points at 2.0885, 2.0990 and 2.1005.

Because the angles are so close, any rally is likely to be labored until 2.1005 is taken out.

A sustained move under 2.0695 will signal the presence of sellers. The next two downside targets are angles at 2.0530 and 2.0455. The latter is the last potential support angle before the 2.0380 main bottom.

Watch the price action and read the order flow at 2.0695 today. This angle is controlling the direction of the market today.

The angles suggests that despite the developing upside bias, we could still see a choppy, two-sided trade especially if the U.S. Dollar is volatile.