Comex High Grade Copper Futures (HG) Technical Analysis – April 29, 2016 Forecast

July Comex High Grade Copper rose on Friday led by a rally in London and expectations of strong Chinese demand. Prices were also underpinned by the weaker U.S. Dollar.

The metal surged this week to its highest level in a week on optimism about Chinese consumption after a slew of above-consensus data on new loans, industrial production, investment and housing.

Clues to Chinese demand will come next week with the release of surveys of purchasing managers in the country’s manufacturing sector.

Technically, the market is up nearly 2.4% after finding support earlier in the week inside a major retracement zone and after testing a pair of important uptrending angles.

Based on the current price at 2.2850, the direction of the market is likely to be determined by trader reaction to the downtrending angle at 2.2805.

A sustained move over 2.2805 is likely to indicate the buying is getting stronger. This could fuel a rally into the next downtrending angle at 2.2930. This is the last potential resistance angle before the 2.3055 main top.

The inability to hold above 2.2805 will signal the presence of sellers. This could create enough downside momentum to trigger a steep break with the next targets coming in at 2.2390 and 2.2270.

Watch the price action and read the order flow at 2.2805 the rest of the session. Look for the upside momentum to continue on a sustained move over this price and for weakness to develop on a sustained move under this level.