Comex High Grade Copper Futures (HG) Technical Analysis – January 24, 2017 Forecast

March Comex High Grade Copper futures are trading higher on Tuesday despite a stronger U.S. Dollar. Traders are saying the strong PMI numbers in Japan and Europe are behind the market’s strength. Later today, the U.S. will report its latest manufacturing PMI data.

Copper prices were helped in London earlier in the day after Britain’s top court ruled that the U.K. government must get parliamentary approval to start the Brexit process.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $2.7160 will signal a resumption of the uptrend. Momentum has also shifted back up with the formation of a new swing bottom at $2.5815. A trade through this level will turn the main trend to down.

The main range is $2.4480 to $2.7160. Its retracement zone is $2.5820 to $2.5505. This zone stopped the break late last week.

The short-term range is $2.7160 to $2.5815. Its retracement zone is 2.6490 to $2.6645. The market is trading on the strong side of this zone, giving copper an upside bias today.

Forecast

Based on the current price at $2.6800 and the intraday upside momentum, the next upside target is a downtrending angle at $2.6860. This is followed by another short-term downtrending angle at $2.7010 and a major long-term downtrending angle at $2.7055. This is the last potential resistance angle before the $2.7160 and $2.7530 main tops. This angle stopped the rally at $2.7160 on January 13.

The first downside target is the short-term Fib level at $2.6645. This is followed by the short-term Fib level at $2.6490. If this fails then we could see a test of a pair of uptrending Gann angles at $2.6280 and $2.6115.

Watch the price action and read the order flow at $2.6860 early today. Trader reaction to this angle will set the tone for the rest of the session.