Daily September High Grade Copper

Comex High Grade Copper Futures Analysis – July 29, 2013

September High Grade Copper futures are rebounding slightly on Monday, following a sharp sell-off to end the week. Concerns about China’s future growth continues to weigh on the markets since the country accounts for about 40 percent of global demand. If it weren’t for the weaker dollar, copper prices probably would’ve erased all of its gains from the June 25 bottom at 2.9855.

This week’s U.S. economic reports could slow down the rate of decline early this week, however, manufacturing data from China may have an offsetting effect. On Wednesday, the Federal Open Market Committee is scheduled to release its latest policy statement. This statement is expected to clarify the central bank’s latest position on tapering its aggressive monetary stimulus program. Copper may move depending on the strength of the statement especially if it produces a volatile move in the U.S. Dollar.

Daily September High Grade Copper
Daily September High Grade Copper

The same can be said about Friday’s U.S. Non-Farm Payrolls report. If the jobs report is bullish then look for sellers to prevail, perhaps driving prices down to the June bottom at 2.9855.

Technically, September Copper is trading a little better this morning after reaching a retracement zone at 3.1098 to 3.0804. After piercing an uptrending Gann angle at 3.1005, the market looked as if it was poised to accelerate to the downside, but overbought conditions and position-squaring prevailed, putting the market back on the strong side of this angle. Standing in the way of a short-term retracement today is a downtrending Gann angle at 3.1140.

The early trade suggests consolidation is likely as investors square positions ahead of Chinese economic data, a Fed statement and the U.S. jobs data later in the week. 

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

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