Daily September High Grade Copper

Comex High Grade Copper Futures Technical Analysis – August 1, 2013 Forecast

After reaching a new higher low at 3.3065, September High Grade Copper futures posted a strong Gann on Wednesday. The price action suggests sentiment may be shifting to the upside as investors take advantage of a weaker dollar and an improving economy in China.

Technically, traders will be going for a second consecutive higher high to create a new higher bottom at 3.3065. This would be the second higher bottom and serve as a strong sign the buying is greater than the selling at current price levels.

Daily September High Grade Copper
Daily September High Grade Copper

Based on the short-term range of 3.2340 to 3.0365, the first upside target is a retracement zone at 3.1353 to 3.1586. Overcoming this zone will put the market in a strong position to rally further. The main upside target and resistance zone remains 3.1990 to 3.2494. The last rally to 3.2340 stopped inside this zone.

Traders should look for an upside bias from the start because of the bullish chart pattern. The catalyst behind the rally will be better-than-expected manufacturing data from China, the U.S. and the Euro Zone. 

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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