Comex High Grade Copper Price Futures (HG) Technical Analysis – June 20, 2017 Forecast

September Comex High Grade Copper futures are trading lower shortly before the regular session opening. Traders are reacting to lower prices in London which were capped by the stronger U.S. Dollar. The dollar firmed on Monday after comments from a Federal Reserve official increased the odds or another rate hike before the end of the year.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $2.6610 will signal a resumption of the uptrend. The trend will turn down on a trade through $2.5290.

A move through $2.5490 will change the minor trend to down.

The short-term range is $2.6610 to $2.5490. Its retracement zone is $2.6050 to $2.6185. This zone was tested on Monday and it stopped the rally. This zone is important to the structure of the market. Bearish investors are going to try to form a secondary lower top. Bullish traders are going to try to overcome this zone in an effort to turn $2.5490 into a new main bottom.

Forecast

Based on the current price at $2.5750 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 $2.5910.

A sustained move under $2.5910 will indicate the presence of sellers. This could create the downside momentum needed to drive the market into the support angle at $2.5600. This angle is very strong. It stopped breaks on June 6 and June 15. So look for a technical bounce on the first test of this angle.

If sellers can take out the angle then look for a move into $2.5490 then $2.5290.

Overcoming the downtrending angle at $2.5910 will signal the return of buyers. This could drive the market back into the short-term 50% level at $2.6050.

The downside momentum indicates were going to test $2.6435.