Comex High Grade Copper Futures (HG) Technical Analysis – February 2, 2017 Forecast

March Comex High Grade Copper futures are under pressure for a second day on Thursday as investors take profits ahead of a looming strike at the world’s largest copper mine in Chile. Sellers are also expressing concerns over President Trump’s pro-business agenda and infrastructure spending plans.

The strike is expected to begin in about 48 hours unless the government intervenes to stop it or unless a resolution is reached. A government intervention would only delay the strike for about another week.

Technical Analysis

The main trend is up according to the daily swing chart, but Wednesday’s closing price reversal top and today’s subsequent confirmation has shifted momentum to the downside.

A trade through $2.7380 will negate the closing price reversal top and signal a resumption of the uptrend. A trade through $2.6340 will change the main trend to down.

The short-term range is $2.6340 to $2.7380. Its 50% level or pivot is controlling the short-term direction of the market.

The intermediate range is $2.5815 to $2.7380. Its 50% level or pivot at $2.6600 is the next downside target.

The main range is $2.4480 to $2.7380. Its retracement zone at $2.5930 to $2.5590 is the primary downside target.

Forecast

Based on the current price at $2.6945, the direction of the copper market the rest of the day will be determined by trader reaction to the short-term pivot at $2.6860.

A sustained move over $2.6860 will indicate the presence of buyers. Overcoming the uptrending angle at $2.6980 will indicate the buying is getting stronger. This may generate enough upside momentum to retest the $2.7380 top.

A sustained move under $2.6869 will signal the presence of sellers. The next target is an uptrending angle at $2.6815. Look for an acceleration to the downside if this angle fails with $2.6600 the next target.

The 50% level at $2.6600 will also trigger an acceleration into $2.6340 to $2.6315.

Basically, look for an upside bias on a sustained move over $2.6980 and a downside bias on a sustained move under $2.6815.