Wednesday 21 September 2016

Comex High Grade Copper Futures (HG) Technical Analysis

December Comex High Grade Copper futures continue to tread water shortly before the regular session opening. The market is trading slightly lower after an earlier rally failed to attract enough buyers to continue the move.
Most major players are on the sidelines ahead of the Fed’s interest rate decision on Wednesday. This decision is important to copper traders because it will affect the U.S. Dollar. The Fed is expected to leave interest rates unchanged in September, but may present a hawkish statement that supports a December rate hike. Because of this, we may see a two-sided trade in copper after the statement is released.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $2.1680 will signal a resumption of the uptrend with the main top at $2.2000 the next likely upside target. The uptrend is safe for now because the swing bottom is way down at $2.0640.

The main range is $2.2570 to $2.0640. Its retracement zone at $2.1605 to $2.1835 is currently providing resistance. A downtrending angle passes through this zone at $2.1695, making it a valid upside target also.

The short-term range is $2.0640 to $2.1680. Its retracement zone at $2.1160 to $2.1035 is the primary downside target.

The market is currently trading inside a downtrending channel. The top of the channel comes in at $2.1695. The bottom of the channel comes in at $2.1450. This channel is controlling the direction of the market.Breaking the support angle at $2.1450 could trigger a break into the next uptrending angle at $2.1240.

Taking out the resistance angle at $2.1695 could drive copper prices into $2.1835.

Read more - https://www.goldcruderesearch.com/comex.php


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