Comex High Grade Copper Futures (HG) Technical Analysis – July 25, 2016 Forecast

September Comex High Grade Copper futures are trading slightly better after Friday’s steep sell-off. The inability to breakout to the upside last week, caused may longs to take profits in the hopes of re-entering at more favorable prices.

The main trend is up according to the daily swing chart. However, momentum has been sideways since July 13.

The short-term range is $2.2775 to $2.2030. Its 50% or pivot level is $2.2405. This price is controlling the short-term direction of the market.

The main range is $2.1165 to $2.2775. Its retracement zone at $2.1970 to $2.1780 is the primary downside target.

Based on Friday’s close at $2.2355 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to a support cluster at $2.2260 to $2.2265.

A sustained move over $2.2265 will signal the presence of buyers. The first upside target is the pivot at $2.2405. Overtaking this level with conviction could trigger a follow-through rally into the long-term downtrending angle at $2.2660. This is followed by a pair of highs at $2.2730 and $2.2775.

A sustained move under $2.2260 will indicate the presence of sellers. The daily chart is wide open under this angle so traders should watch for an acceleration to the downside with the next targets a minor bottom at $2.2030 and the 50% level at $2.1970.

The early price action suggests that two levels are controlling the market shortly before the opening. Look for an early upside bias if buyers can take out and hold above $2.2405. A downside bias is likely to start if $2.2260 fails as support.