Comex High Grade Copper Price Futures (HG) Technical Analysis – August 31, 2017 Forecast

Copper traders ignored the stronger U.S. Dollar and drove the December Comex High Grade Copper futures contract to their highest level in almost three years in reaction to an acceleration in China manufacturing data.

China’s manufacturing growth unexpectedly accelerated in August, suggesting its economy is expanding strongly despite rising financing costs and a cooling housing market.

Broker Marex Spectron also said the next speculative long position in copper rose to 43 percent of open interest as of Friday, the most since 2004.

Finally, supply issued that helped drive prices higher this year faded as output in Chile, the world’s biggest copper producer, increased in July and Indonesia agreed to allow Freeport-McMoRan, Inc. to keep operating its giant Grasberg copper mine.

Technical Analysis

The main trend is up according to the daily swing chart. However, the market is in the window of time for a potentially bearish closing price reversal chart pattern.

Forecast

Based on the current price at $3.1120 (1220 GMT), the nearest upside target is an uptrending angle at $3.1735. Crossing to the strong side of this angle will put copper in an extremely bullish position. This could trigger a rally into a pair of tops at $3.2245 and $3.2415.

The first downside target is the former top at $3.0625. This is followed by a pair of uptrending angles at $3.0335 and $3.0310. The market has been following this angle higher since July 10.

The market is currently trading between uptrending angles and the chart pattern is all about momentum. Prices are eight going to spike higher into $3.1735, or break back to the uptrending angle at $3.0310.