Comex High Grade Copper Futures (HG) Technical Analysis – September 19, 2016 Forecast

December Comex High Grade Copper futures are trading weaker as investors took profits after last week’s price surge and ahead of Wednesday’s Fed interest rate decision. The consensus expects the Fed to leave interest rates unchanged.

A stronger U.S. Dollar is also weighing on copper prices. Since copper is dollar-denominated, it tends to weaken when the dollar rises because of lower demand from foreign traders. Losses could be limited because of the uptrend. The market is getting support from expectations of renewed demand from China.

TECHNICAL ANALYSIS

The main trend is up according to the daily swing chart. The next target is the main top at $2.2000. The new minor top is $2.1680. The trend isn’t close to turning down, but it is running into resistance inside a major retracement zone.

The main range is $2.2570 to $2.0640. Its retracement zone at $2.1605 to $2.1835 is the primary upside target. This zone provided resistance last week when the market topped at $2.1680.

Based on the current price at $2.1475, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at $2.1475.

A sustained move over $2.1475 will indicate the presence of buyers. The next upside targets are the main 50% level at $2.1605, an uptrending angle at $2.1640, a minor top at $2.1680 and a downtrending angle at $2.1720.

A sustained move under $2.1475 will signal the presence of sellers. The daily chart is open to the downside with the next major target a price cluster at $2.1160 to $2.1140.

FORECAST

WATCH THE PRICE ACTION AND READ THE ORDER FLOW AT 2.1475. TRADER REACTION TO THIS ANGLE WILL TELL US IF BUYERS HAVE RETURNED OR IF SELLERS ARE INCREASING PRESSURE.