Comex High Grade Copper Futures (HG) Technical Analysis – January 17, 2017 Forecast

March Comex High Grade Copper futures broke sharply early in the session due to uncertainty in the U.K. over Prime Minister Theresa May’s speech outlining her plan for Britain’s exit from the European Union. However, the market reached its low for the session and began to rally after the U.S. Dollar plunged sharply lower.

The dollar plummeted after President-elect Donald Trump said U.S. companies could not compete with China “because our currency is too strong. And it’s killing us”.

Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has shifted to the downside. A trade through $2.7160 will signal a resumption of the uptrend.

The main range is $2.4480 to $2.7160. Its retracement zone at $2.5820 to $2.5505 is the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Forecast

Based on the current price at $2.6385 and the intraday shift in momentum to the upside, the first upside target is the long-term downtrending angle at $2.6705. If the trend is getting ready to turn lower, sellers will stop a rally at this angle. Overtaking the angle could trigger an acceleration to the upside with the next target angle $2.7120. This is the last potential resistance angle before the $2.7160 minor top and the $2.7530 main top.

If the selling resumes then look for a break into the uptrending angle at $2.5780. This is followed by a downtrending angle at $2.5880 and the main 50% level at $2.5820.

If the dollar continues to weaken then look for buyers to go after $2.6705 later today.