Comex High Grade Copper Price Futures (HG) Technical Analysis – August 2, 2017 Forecast

September Comex high grade copper futures are trading slightly lower shortly before the New York regular session opening. The price action suggests profit-taking is taking place due to overbought conditions following last week’s steep rally.

Technical Analysis

The main trend is up according to the daily swing chart. A new main top was formed during the pre-market session at $2.9200. A trade through this level will signal a resumption of the uptrend. This could trigger an acceleration into the May 15, 2015 main top at $2.9375. A sustained move over this level could lead to an eventual test of the major Fibonacci level at $3.0300.

The first downside target is a major 50% level at $2.8305.

The short-term range is $2.6310 to $2.9200. If the selling pressure is strong enough, we could see an eventual break into its retracement zone at $2.7755 to $2.7415.

Forecast

Based on the current price at $2.8720, the direction of the copper market today is being controlled by a downtrending angle at $2.8800.

A sustained move under $2.8800 will indicate the presence of sellers. If could create enough downside momentum to challenge the main 50% level at $2.8305. This is followed by an uptrending angle at $2.8010 then the short-term 50% level at $2.7755.

Overtaking the angle at $2.8800 will signal the presence of buyers. This could lead to a labored rally into potential resistance angles at $2.9000 and $2.9100. The latter is the last potential resistance angle before the $2.9200 main top.

Look for an intraday upside bias to develop on a sustained move over $2.8800 and for a downside bias to develop on a sustained move under this downtrending angle.