Comex High Grade Copper Futures (HG) Technical Analysis – January 18, 2017 Forecast

March Comex High Grade Copper futures are down for a second day as investors are ignoring the weaker U.S. Dollar and instead are focusing on uncertainty ahead of Donald Trump’s inauguration as U.S. President this week and his ability to put in motion his economic policies in a timely manner. Additionally, there are concerns over Britain’s impending exit from the European Union and future demand from China.

Technical Analysis

The main trend is up according to the daily swing chart, but momentum appears to be shifting to the downside. A trade through $2.7160 will signal a resumption of the uptrend.

The short-term 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 area.

Forecast

The current price at $2.6130 and yesterday’s price action suggests the market is headed into a potential support cluster at $2.5880, $2.5830 and $2.5820. One again, watch for a technical bounce on the first test of this area. If it fails then the market could accelerate into $2.5505.

On the upside the nearest resistance angle drops in t $2.6680.

The copper market could react the U.S. Dollar today so watch for volatility with the release of the U.S. consumer inflation number at 1330 GMT.