Comex High Grade Copper Price Futures (HG) Technical Analysis – May 10, 2017 Forecast

July Comex High Grade Copper is trading nearly flat on Wednesday. The U.S. Comex market is feeling pressure from weakness in Asia, but getting support from a positive trade in London.

Asian copper markets were down early Wednesday amid ongoing concerns over rising supply and disappointing Chinese import data. The London market was getting support from a drop in LME copper stocks.

Daily July Comex High Grade Copper

Technical Analysis

The main trend is down according to the daily swing chart. The market isn’t close to turning the trend to up, but it is consolidating for a second day, which suggests investor indecision and impending volatility. If there is a rally then it is likely to be driven by short-covering or bottom-picking.

On the downside, the key support is a major 50% level at $2.4755, followed closely by this week’s low at $2.4935. The final support is the December 27, 2016 bottom at $2.4625.

On the upside, the first target is the close on the last trading day of 2016 at $2.5180.

Forecast

The early price action on Wednesday suggests prices may be going through a transition period, but lacks a strong catalyst to turn the market higher. This tells me that investors are waiting for news to trigger the next move.

Trend traders may go after the layers of support at $2.4755, $2.4935 and $2.4625.

Aggressive counter-trend traders may go after the layers of resistance at $2.5180, $2.5200 and a downtrending angle at $2.5545.

The trigger point for a breakout to the upside is $2.5545. If buyers can take this out with conviction. We could see the start of a strong rally.

Look for sideways price action today.