Comex High Grade Copper (HG) Futures Technical Analysis – April 23, 2014 Forecast

July Comex High Grade Copper futures are trading lower with a limited range and on low volume. The current sideways chart pattern suggests traders are waiting for a market changing event from either China or the U.S. to move it into the next level.

No matter how one looks at the chart pattern, the movement is being clearly defined by diagonal and horizontal lines. The diagonal lines have formed a triangle chart pattern, bounded by 3.0580 and 2.9920. If copper continues to trade inside the triangle then it should reach 3.0250 on or about May 1 or May 2. At this time and this price, traders will be forced to move the market either sharply higher or sharply lower. This is where understanding how to read order flow will come in handy.

Copper is also trading inside a pair of ranges. The main range is 3.2280 to 3.8720, making its retracement zone at 3.0500 to 3.0920 important resistance.

The short-term range of 2.8720 to 3.0690 has formed retracement zone support at 2.9705 to 2.9705.

Patience is the key for momentum traders at this time. Range traders are likely to continue to sell rallies and buy dips until forced to change their strategy. Continue to watch the order flow while the market is inside the triangle. It should be decreasing. The first strong uptick in volume will be a sign that traders are getting ready to make their move. This should lead to a volatile breakout. At this time, the direction isn’t certain, but that shouldn’t bother traders who are looking for action.