Comex High Grade Copper Price Futures (HG) Technical Analysis – May 18, 2017 Forecast

July Comex High Grade Copper prices broke sharply early Thursday as investors continued to express doubts that President Donald Trump would be able to boost infrastructure spending amid the latest controversies surrounding his administration.

Additionally, the weaker dollar has done nothing to support the markets as concerns over China’s demand overshadowed the weaker Greenback.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through $2.4725 will signal a resumption of the downtrend. A move through $2.5595 will turn the minor trend up.

Based on the early price action, the market continues to straddle the December 30, 2016 close at $2.5180 while respecting the long-term 50% level a $2.4755, the main bottom at $2.4725 and the December 27, 2016 main bottom at $2.4625.

Forecast

Based on the current price at $2.5305 and the earlier price action, traders may try to retest support at $2.5180 and $2.5125. If they fail then we could see a further break into $2.4755, $2.4725 and $2.4625. Taking out $2.4725 will signal a resumption of the downtrend and that sellers are regaining control of the market.

A sustained move over $2.5125 will indicate that buyers are still coming in to defend the recent bottom. This may create enough upside momentum to challenge a series of levels at $2.5525, $2.5595 and $2.5645.

The trigger point for an acceleration to the upside is $2.54645. If buyers can take out this level with conviction, we could see a surge into the main retracement zone at $2.5835 to $2.6070.

The longer copper stays in this trading range, the greater the move once it decides to break out. Remain patient, or learn to trade a range.