Comex High Grade Copper Price Futures (HG) Technical Analysis – September 25, 2017 Forecast

December Comex High Grade Copper futures are trading unchanged based on the pre-market trade. Despite a potentially bullish closing price reversal bottom from Friday, there was very little follow-through to the upside. Buyers attempted to breakout to the upside over $2.9565 but backed away when the U.S. Dollar Index gapped higher. A stronger greenback tends to limit demand for dollar-denominated copper.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since September 5. Friday’s closing price reversal bottom may be the first sign that momentum is getting ready to shift back to the upside.

The trade through $2.9565 earlier today confirmed the chart pattern, but there was very little follow-through to the upside.

A trade through $2.8940 will negate the chart pattern. Taking out $2.8935 will change the main trend to down. This could lead to a test of the next main bottom at $2.8795.

The major retracement zone is $2.9150 to $2.8525. Friday’s low occurred inside this zone.

The short-term range is $2.9935 to $2.8940. Its 50% level or pivot is at $2.9440.

The new short-term range is $3.1785 to $2.8940. If there is a breakout to the upside then its retracement zone at $3.0365 to $3.0700 will become the primary upside target.

Daily Forecast

Based on the current price at $2.9470 (0420 GMT) and the earlier price action, the direction of the copper market today is likely to be determined by trader reaction to the short-term pivot at $2.9440.

A sustained move over $2.9440 will signal the presence of buyers. This could generate the upside momentum needed to extend the rally. The initial move could be labored until $2.9935. Taking out this price could trigger an acceleration into the resistance cluster at $3.0365 to $3.0385.

A sustained move under $2.9440 will indicate the presence of sellers. This could drive the market into a series of potential support levels at $2.9150, $2.8940, $2.8935 and $2.8795.

Watch the price action and read the order flow at $2.9440 all session. Trader reaction to this level will tell us if the bulls or the bears are in control. A weaker U.S. Dollar should provide support. A stronger dollar will limit gains.