Comex High Grade Copper Futures (HG) Technical Analysis – July 22, 2016 Forecast
September Comex High Grade Copper futures continued to bang up against resistance for a third day as buyers tried to trigger a breakout to the upside. The continuous pounding of the resistance angle is an attempt by bullish traders to chip away at the large sell order currently preventing the rally from continuing.
The main trend is up according to the daily swing chart. A trade through $2.2775 will signal a resumption of the uptrend. This could create enough upside momentum to trigger a strong price surge into the April 22 top at $2.3060. Because of the prolonged rally in terms of price and time, bullish investors still have to watch out for a potentially bearish closing price reversal top, however.
Your capital is at risk
The short-term range is $2.2775 to $2.2030. Its 50% level or pivot is $2.2405. This price is currently controlling the short-term direction of the market.
The inability to overcome the long-term downtrending angle at $2.2665 will indicate the presence of sellers. This could lead to a test of the pivot at $2.2405. We saw this move earlier in the session.
Taking out $2.2405 will indicate the selling is getting stronger. This could create enough downside momentum to challenge a pair of angles at $2.2275 and $2.2165. If traders are going to make another run at the upside then this area will hold as support.
Based on the earlier price action, look for a bullish tone to develop on a sustained move over $2.2665 and a bearish tone on a sustained move under $2.2405. The trigger point for a steep break to the downside is $2.2165.
This market is likely to remain in a tight range until the big sellers lifts his orders, or until he moves them lower.