Comex High Grade Copper Futures (HG) Technical Analysis – June 26, 2014 Forecast

Posted June 26, 2014 8:12 (GMT) |By FX Empire Analyst - James Hyerczyk
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Technical Reports

September Comex High Grade Copper futures rallied for the ninth session since bottoming at 3.0100 on June 12. The strong buying took out the last downtrending angle before the May 27 top at 3.1780, making this price the next likely upside target.

Since today is the tenth day up from the bottom at 3.1000, the market is in the window of time for a potentially bearish closing price reversal top. This will occur if the market takes out yesterday’s high at 3.1690 then closes lower, below the opening and below the mid-point of the session on better-than-average volume.

The first upside target today is the May 27 top at 3.1780, followed by the major Fibonacci level at 3.1885.

The first sign of weakness today will be a sustained move under the downtrending angle at 3.1505. If the selling pressure is strong enough, the market may even test the major 50% level at 3.1295.

Fundamentally, the market is being driven by tight supply. In Indonesia, doubts remain that major copper miners will accept a new mining export tax currently being drafted. A signed agreement could potentially end a five-month-old dispute that has halted copper shipments, eroding supply. Earlier in the year, copper analysts had predicted that copper would end the year with a surplus.