Comex High Grade Copper Futures (HG) Technical Analysis – April 28, 2017 Forecast

July Comex High Grade Copper futures are trading higher shortly before the regular session opening. The market is trying to rally, but the move can’t seem to gain traction because of concerns over demand from China. Traders are also watching the U.S. Dollar and today’s Gross Domestic Product report.

Technical Analysis

The main trend is down according to the daily swing chart. Momentum is trying to trend higher, but the rally is being stopped by a pair of retracement zones.

The first target is the major Fibonacci level at $2.6070. This is followed by a short-term 50% level at $2.6200 and a downtrending angle at $2.6310.

The daily chart begins to open up over $2.6310 with the next two targets coming in at $2.6460 and $2.6515.

Forecast

Based on the current price at $2.6010, the direction of the copper market today is likely to be determined by trader reaction to the Fib level at $2.6070.

The inability to overcome $2.6070 will signal the presence of sellers. This could drive the copper market back into the uptrending angle at $2.5785. Breaking this angle could trigger an acceleration into the next uptrending angle at $2.5435.

Overtaking the Fib level at $2.6070 will indicate the presence of buyers. This could drive the market higher, but the rally is likely to be labored because of potential resistance at $2.6200 $2.6310. Overcoming $2.6310 could trigger an acceleration into $2.6460 to $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 buyers have returned and are taking over.