Comex High Grade Copper Futures (HG) Technical Analysis – March 15, 2017 Forecast

May Comex High Grade Copper futures are trading higher shortly before the regular session opening. The market is being supported by news that analysts now expect a copper market deficit for 2017 after prolonged disruptions at the world’s two largest copper mines, Grasberg in Indonesia and Escondida in Chile, even as the immediate disruption looks set to ease.

Today’s Fed interest rate decision and monetary policy statement could affect the U.S. Dollar. A weaker dollar will be supportive for copper. A stronger dollar could put a cap on the rally and trigger a sell-off.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The market is also trading on the strong side of a major retracement zone, giving copper an upside bias.

The next target is a short-term 50% level at $2.6725. This is followed by the main retracement zone at $2.6975 to $2.7300.

Forecast

Based on the current price at $2.6595 and the earlier price action, the direction of the copper market today is likely to be determined by trader reaction to the uptrending angle at $2.6385. This angle has been guiding the market higher for four sessions.

A sustained move over $2.6385 will signal the presence of buyers. Overtaking $2.6460 indicates the buying is getting stronger. If the upside momentum continues today then look for the move to extend into $2.6725. This is the trigger point for a possible surge into $2.6975.

The best upside target today is a resistance cluster at $2.7300 to $2.7310.

If $2.6385 fails as support then look for the start of a sell-off with the next potential target the support cluster at $2.6010 to $2.5985.

Simply stated, look for the market to strengthen over $2.6725 and to weaken under $2.6385.