Comex High Grade Copper Price Futures (HG) Technical Analysis – January 23, 2018 Forecast

Several factors are contributing to a steep drop in March Comex High Grade Copper futures on Tuesday. These include a firm U.S. Dollar, expectations of lower demand from China and worries about U.S. tariffs.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market isn’t close to changing the trend to up, but it is in the window of time for a closing price reversal bottom.

The main range is $2.9430 to $3.3220. Its retracement zone at $3.1325 to $3.0878 is the primary downside target. The upper or 50% level of this range is currently being tested at $3.1325. We could see a technical bounce on the first test of this level.

If it fails then look for the selling to extend into an uptrending Gann angle at $3.1030, followed by the Fibonacci level at $3.0880.

Daily Technical Forecast

Based on the current price at $3.1355 and the earlier price action, the direction of the copper market the rest of the session will be determined by trader reaction to the 50% level at $3.1325.

A sustained move over $3.1325 will indicate the presence of buyers. This could trigger a rally back to a downtrending Gann angle at $3.1620. This angle has been guiding the market lower since December 28. Overcoming it could trigger an acceleration to the upside.

A sustained move under $3.1325 will signal the presence of sellers. This level is a possible trigger point for an acceleration into an uptrending angle at $3.1030. We could see a technical bounce on the first test of this angle. If it fails then look for the selling to extend into $3.0880.