Comex High Grade Copper Futures (HG) Technical Analysis – May 2, 2016 Forecast

The weaker U.S. Dollar is helping to underpin July Comex High Grade Copper shortly before the cash market opening. Gains are being limited, however, by concerns over demand in China and reportedly high inventory in Asia.

Technically, the main trend is up according to the daily swing chart. A trade through 2.3055 will reaffirm the uptrend.

Based on Friday’s close at 2.2835, the direction of the market today will likely be determined by trader reaction to the cluster of resistance at 2.2905, 2.2915 and 2.2980. The latter is the last potential resistance angle before the 2.3055 main top.

A sustained move over 2.2980 will indicate the presence of buyers. This could create enough upside momentum to challenge the main top at 2.3055. Taking out this level will signal a resumption of the uptrend after a six day setback. This could trigger an acceleration to the upside with 2.3290 the next likely target.

The inability to overcome 2.2980 and sustain a rally over 2.2905 will indicate the selling is greater than the buying at current price levels. This could trigger a break into the next downtrending angle at 2.2755.

The angle at 2.2755 is the trigger point for an acceleration to the downside with potential targets a pair of uptrending angles at 2.2490 and 2.2370.

Look for a bearish tone to develop later today on a sustained move under 2.2905 and a bullish tone on a sustained move over 2.2980.