Comex High Grade Copper Price Futures (HG) Technical Analysis – August 3, 2017 Forecast

September Comex High Grade Copper is trading slightly lower after a private survey pointed to a slower growth in China’s services sector and the U.S. Dollar firmed ahead of Friday’s key labor report.

In China, the Caixin/Markit services purchasing managers’ index (PMI) dropped to 51.5 in July from 51.6 in June. The data showed China’s services sector expanded at a slightly slower pace in July as new business growth eased, pointing to potential softening in a key part of the world’s second-largest economy.

Technical Analysis

The main trend is up according to the daily swing chart. However, upside momentum is starting to weaken.

A trade through $2.9200 will signal a resumption of the uptrend. This could lead to a quick rally into the May 15, 2015 main top at $2.9375. This is the potential trigger point for an acceleration to the upside with the next major target coming in at $3.0300.

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

The main range is $2.6310 to $2.9200. If there is a sell-off then its retracement zone at $2.7755 to $2.7415 will become the primary downside target.

Forecast

Based on the current price at $2.8670 and the earlier price action, the direction of the market the rest of the session will be determined by trader reaction to the downtrending angle at $2.8600.

A sustained move under $2.8600 will indicate the presence of sellers. This could trigger an acceleration into the 50% level at $2.8305 then the uptrending angle at $2.8110.

Holding $2.8600 will signal the presence of buyers. This could create enough upside momentum to challenge the next two downtrending angles at $2.8900 and $2.9050.

Basically, look for a rebound rally on a sustained move over $2.8600 and for a downside bias on a sustained move under this angle.