Comex High Grade Copper Futures (HG) Technical Analysis – January 23, 2017 Forecast

March Comex High Grade Copper futures surged early in the session only to run into wall of selling pressure due to concerns about oversupply. Traders are also worried about the lack of progress towards Trump’s plan to rebuild the American infrastructure which is supposed to lead to increased demand.

Technical Analysis

The main trend is up according to the daily swing chart, but the market is struggling to maintain the uptrend. Momentum had been trending lower for three days before the market rebounded with a two day rally.

A trade through $2.7160 will signal a resumption of the uptrend. A move through $2.5815 will turn the main trend down.

The main range is $2.4480 to $2.7160. Its retracement zone at $2.5820 to $2.5505 is the primary downside target. The upper level at $2.5820 provided support last week when the market reached a bottom at $2.5815.

The short-term range is 2.7160 to $2.5815. Its retracement zone is $2.6490 to $2.6645. This zone stopped the rally earlier in the day. It is controlling the short-term direction of the market.

Forecast

Based on the current price at $2.6390 and the earlier price action. The market is set to open the regular session between support and resistance. ‘

On the upside, the resistance is clustered at $2.6490, $2.6605, $2.6645 and $2.6660. Needless to say, we’re likely to see a labored rally until the buying is strong enough to take out $2.6660.

We could see an acceleration to the upside when $2.6660 is taken out with the next target angle coming in at $2.6910.

If trader decide to play the downside then look for a retest of the uptrending angle at $2.6180. This angle provided support earlier in the session. Crossing to the weak side of this angle could trigger an acceleration to the downside with an eventual test of $2.5820 to $2.5815.

We could be looking at near-term volatility due to the influence of the dollar, Trump and Chinese demand.