Comex High Grade Copper Price Futures (HG) Technical Analysis – July 11, 2017 Forecast

September Comex High Grade Copper futures are inching higher on the back of a positive trade in Asia that was fueled by stronger steel prices in China. Gains were limited by a stronger U.S. Dollar and uncertainty ahead of the testimony from Federal Reserve Chair Janet Yellen on Wednesday. Copper may come under fresh pressure if Yellen offers clues on when the central bank would tighten U.S. monetary policy.

Some traders expect to see the market underpinned by news of a strike in Chile. According to Reuters, workers at the Zaldivar copper mine in Chile, owned by Antofagasta and Barrick Gold Corp., voted to approve a strike on Monday after talks with the company failed.

Technical Analysis

The main trend is up according to the daily swing chart. Traders are trying to shift momentum back to the upside after trending lower since June 30. A trade through $2.6310 will indicate the momentum is still moving lower.

The main range is $2.5490 to $2.7185. Its retracement zone at $2.6340 to $2.6135 is the primary downside target. This zone provided support on Monday when the market reached its low at $2.6310.

The short-term range is $2.7185 to $2.6310. Its retracement zone at $2.6750 to $2.6850 is the primary upside target. This zone is very important because aggressive counter-trend sellers may try to stop the rally in an effort to form a potentially bearish secondary lower top.

Bullish traders are going to try to drive the market through the short-term retracement zone in an effort to make $2.6310 an important secondary higher bottom.

Additional resistance is a major 50% level at $2.6675.

Forecast

Based on the current price at $2.6575 and the earlier price action, the direction of the copper market today is likely to be determined by trader reaction to the downtrending angle at $2.6585.

A sustained move over $2.6585 will signal the presence of buyers. This could trigger a surge into a series of potential resistance levels at $2.6675, $2.6750 then $2.6850 and $2.6875.

A sustained move under $2.6585 will indicate the presence of sellers. The daily chart is open to the downside with the main target a support cluster at $2.6340. This is followed by yesterday’s low at $2.6310.

If $2.6310 fails as support then don’t be surprised by an acceleration into $2.6135.

Watch the price action and read the order flow at $2.6585 all session. Trader reaction to this angle will set the tone for the day.