Comex High Grade Copper Price Futures (HG) Technical Analysis – June 16, 2017 Forecast

July Comex High Grade Copper futures are trading slightly lower on Friday, but under light volume. The New York market is mirroring the price action in London, which finished slightly higher earlier in the session. Despite the nearly sideways price action, the market is still set up to end the week with its biggest weekly decline since early May.

Traders were primarily reacting to a higher interest rate environment going forward now that the Fed has raised rates and has left on the table the possibility of another rate hike later in the year.

Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is definitely trending lower. A trade through $2.5155 will change the main trend to down.

The short-term range is $2.5155 to $2.6520. Its retracement zone is $2.5840 to $2.5675. The market is straddling $2.5675 today so this price is acting like resistance.

A new range may be forming between $2.6520 and $2.5340. Its retracement zone at $2.5930 to $2.6070 will become the next upside target.

Forecast

Based on the current price action, the direction of the market into the close today is likely to be determined by trader reaction to $2.5675.

A sustained move under $2.5675 will indicate the presence of sellers. This could drive the market into yesterday’s low at $2.5340. This is followed by the December 30, 2016 main bottom at $2.5180, followed by the main bottom at $2.5155.

Overcoming $2.5675 could trigger the start of a labored rally with potential retracement level targets coming in at $2.5840, $2.5930 and $2.6070.