Comex High Grade Copper Futures (HG) Technical Analysis – April 24, 2017 Forecast

July Comex High Grade Copper futures rose early Monday after the results of the French election was released, however, buyers couldn’t hold on to the gains. There’s a bit of a risk-on mood and the U.S. Dollar is lower, but buyers may feel that copper is not an attractive enough buy at current levels. Additionally, there are still concerns over demand from China. Traders are expecting the Chinese government to clamp down on the housing industry.

Technical Analysis

The main trend is down according to the daily swing chart. The market is far from turning the trend to up. A trade through $2.5085 will signal a resumption of the downtrend.

Copper is also trading on the weak side of a number of retracement levels. This is helping to give copper a downside bias. On the upside, resistance comes in at $2.6070 and $2.6200.

Overtaking $2.6200 could trigger an acceleration into a possible resistance cluster at $2.6460 to $2.6515.

Forecast

Based on the current price at $2.5560 and the earlier price action, the direction of the copper market is likely to be determined by trader reaction to a pair of angles at $2.5685 and $2.5710.

A sustained move under $2.5685 will signal the presence of sellers. This could drive the market into a pair of short-term uptrending angles at $2.5385 and $2.5285. The latter is the last potential support angle before the $2.5085 main bottom.

A sustained move over the uptrending angle at $2.5710 will indicate the presence of buyers. The chart indicates there is room to the upside over this angle. This could generate the upside momentum needed to challenge the major Fibonacci level at $2.6070.

Simply put, look for a bullish tone to develop on a sustained move over $2.5710 and a bearish tone on a sustained move under $2.5685.