Comex High Grade Copper Futures (HG) Technical Analysis – April 26, 2017 Forecast

July Comex High Grade Copper futures are trading flat shortly before the regular session opening. However, the market held near its one-week high, supported by a weaker U.S. Dollar. Despite the strength this week caused by increased demand for risky assets, buyers are scare.

Buying volume has been light because of the scaling back of bullish bets by hedge and commodity funds. Fundamentally, traders are facing a weaker physical market, monetary tightening in the U.S. and President Trump’s inability to get his infrastructure spending plan set in motion.

Technical Analysis

The main trend is down according to the daily swing chart. Momentum is starting to inch higher with the formation of the new main bottom at $2.5085 on April 19.

On the upside, the copper market faces resistance at a couple of retracement levels at $2.6070 and $2.6200. Overtaking the last level could trigger an acceleration into $2.6460 and $2.6515.

Forecast

Based on the current price at $2.5900 and the earlier price action, the direction of the copper market today is likely to be determined by trader reaction to the major Fibonacci level at $2.6070.

A sustained move under $2.6070 will signal the presence of sellers. This could drive the market into the nearest uptrending angle at $2.5585.

Overtaking $2.6070 will indicate the presence of buyers. The next targets are $2.6200 and $2.6250. Look for an acceleration to the upside if buyers can take out $2.6250. The next potential target is a cluster of numbers at $2.6410, $2.6460 and $2.6515.

Watch the price action and read the order flow at $2.6070 all session. Trader reaction to this level will tell us if the four day rally is getting stronger, or if sellers are retaking control.