Comex High Grade Copper Price Futures (HG) Technical Analysis – August 7, 2017 Forecast

September Comex High Grade Copper futures are trading flat shortly before the New York opening. Earlier in the session, the market surged in an attempt to take out the previous main top, but sellers quickly came in to stop the rally. Some suggest the rally was short-covering. Others are saying the firmer U.S. Dollar helped stop the rally.

In other news, hedge funds and money managers boosted their net long positions in COMEX copper to a record high in the week to August 1, according to the U.S. Commodity Futures Trading Commission.

I think we’ve hit a critical area on the charts. Bullish traders are going to have to be willing to buy strength at current price levels to drive this market through resistance. However, they are going to need a catalyst to give them enough confidence to do this since prices are relatively expensive.

Technical Analysis

A trade through $2.9200 will signal a resumption of the uptrend. This could trigger a fast move into the May 15, 2015 main top at $2.9375. A sustained move over this level will put the market in a strong position that could eventually lead to a move into the major Fibonacci level at $3.0300.

A move through $2.8600 will change the main trend to down. This could trigger a move into the major 50% level at $2.8305.

The main range is $2.6310 to $2.9200. If the selling pressure continues then its retracement zone at $2.7755 to $2.7415 will become the primary downside target.

Forecast

Based on the current price at $2.8845, the direction of the copper market today is likely to be determined by trader reaction to the short-term pivot at $2.8900.

A sustained move over $2.8900 will indicate the presence of buyers but this will likely lead to a labored rally with potential resistance targets layered at $2.8950, $2.9075 and $2.9140. This group of angles is followed by the main top and potential breakout level at $2.9200.

A sustained move under $2.8900 will signal the presence of sellers. We could see an acceleration to the downside since the next major target is the main bottom at $2.8600. This is followed by a support cluster at $2.8310 to $2.8305.

The way of least resistance is down under $2.8900. Look for a labored rally on a move above this level.