Comex High Grade Copper Futures (HG) Technical Analysis – May 25, 2016 Forecast

July Comex High Grade Copper futures are trading higher on Wednesday. The lack of selling pressure from the commodity funds and the weaker U.S. Dollar are underpinning the market.

The main trend is down according to the daily swing chart. A trade through 2.1390 will turn the main trend to up. 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 the primary upside target. The lower, or 50% level of this zone was tested on Tuesday. Today’s price action suggests that buyers are going to go after this level again today.

Overtaking 2.0885 will indicate the presence of buyers. This could fuel a fast rally into a long-term downtrending angle at 2.0940. If this angle is taken out then look for the rally to extend into the Fib level at 2.1005.

The Fib level at 2.1005 is the trigger point for an even stronger rally with the next major target the main top at 2.1390.

The inability to overtake and sustain a rally over 2.0885 will signal the presence of sellers. This could trigger a break into the nearest support angle at 2.0580. This is followed by another angle at 2.0480. This is the last potential support angle before the 2.0380 main bottom.

Watch the price action and read the order flow at 2.0885 today. Trader reaction to this level will tell us if the bulls or the bears are in control.