Comex High Grade Copper Price Futures (HG) Technical Analysis – August 21, 2017 Forecast

December Comex High Grade Copper futures inched up earlier in the session, taking out last week’s high. The market is piggy-backing the rally in London zinc that sent that market to its highest price in 10-years. A firmer U.S. Dollar is helping to limit gains in the dollar-denominated futures contract.

LME copper rallied 1 percent early Monday, having earlier hit $6593 a tonne, the highest price since November 2014.

Technical Analysis

The main trend is up according to the daily swing chart. The trend will turn down on a trade through the last swing bottom at $2.8935.

If buyers continue to increase the upside momentum then the October 29, 2014 main top will become the primary upside target. If the follow-through rally stalls then investors should watch for a potentially bearish closing price reversal top formation.

Forecast

Today’s rally is all about momentum and whether hedge funds will be willing to continue to buy strength in this market given the fundamentals and as we approach a multi-year top. Bearish traders claim the market is balanced so this rally is unjustified.

Now that the copper market has posted a higher-high, it’s important that it continues to close higher. Therefore a move below Friday’s close at $2.9615 will be the first sign of weakness.

The major support angle is $2.9510. This angle held as support earlier in the session. It has been guiding the copper market higher since the $2.6510 main bottom from July 10. Recently sellers tried to drive the market through this angle but failed to draw enough volume to extend the move. Nonetheless, crossing to the weak side of this angle again will indicate the presence of sellers.