Comex High Grade Copper Price Futures (HG) Technical Analysis – July 14, 2017 Forecast

September Comex High Grade Copper futures are trading lower shortly before the regular session opening. The market is being underpinned by stronger-than-expected import data from China, improved prospects for the global economy supporting prices and the weaker dollar, which is helping to drive up foreign demand.

In other news, China posted stronger-than-expected June trade figures on Thursday, bolstered by firm global demand for Chinese goods and robust appetite for construction materials at home, but local curbs on lending could weigh on imports later this year.

Finally, workers at the Zaldivar copper mine in Chile, owned by Antofagasta Plc and Barrick Gold Corp, will resume talks with Antofagasta after voting to strike earlier this week, the union said on Thursday.

Technical Analysis

The main trend is up according to the daily swing chart. A move through this week’s high at $2.6985 will indicate strength while a trade through $2.7185 will signal a resumption of the uptrend. A trade through $2.6310 will change the main trend to down.

The short-term range is $2.7185 to $2.6310. The market is currently straddling its retracement zone at $2.6750 to $2.6850. This zone appears to be controlling the near-term direction of the market.

Forecast

Based on the current price at $2.6760 and the earlier price action, we could be looking at a choppy, two-sided trade until the market breaks out of the retracement zone bounded by $2.6675 to $2.6850.

Look for a bullish tone to develop on a sustained move over $2.6850. This could trigger a fast rally into the downtrending angle at $2.6960. This is the trigger point for an acceleration into $2.7075 and $2.7105. These are the last lines of defense ahead of the main top at $2.7185.

Look out to the downside if $2.6675 fails as support. The next major target angles come in at $2.6510 and $2.6410. The latter is the last potential support angle before the major 50% level at $2.6340, followed by the main bottom at $2.6310.