Daily December High Grade Copper

Comex High Grade Copper Futures Technical Analysis – September 10, 2013 Forecast

December High Grade Copper futures are called lower this morning. The weakness comes as a surprise since overnight China released stronger-than-expected industrial and retail sales reports. Industrial production rose 10.4%, up from July’s 9.7% and higher than the 9.9% forecast. Retail sales increased by 13.4% compared to August 2012. Pre-report estimates called for a steady 13.2% rate.

Renewed talk of Fed tapering by the end of the month may be exerting the downside pressure although the U.S. Dollar isn’t reacting much. Typically, a weak U.S. Dollar is supportive for the dollar-denominated copper market.

Daily December High Grade Copper
Daily December High Grade Copper

Technically, the market stopped at 3.2990 on Monday. This was slightly below a downtrending Gann angle and a 50% level. The angle comes in today at 3.2950. The 50% level is at 3.3075. Both combine to form solid resistance today.

The short-term range is 3.2200 to 3.2990, making the retracement zone at 3.2595 to 3.2502 a key support area today. Uptrending Gann angle support is at 3.2500, followed by 3.2350.

The inability to rally overnight from the bullish Chinese economic data is an indication the selling is greater than the buying. The key area to watch is a support cluster at 3.2350 to 3.2200. Early downside momentum appears to be targeting this area. A break through it could trigger an acceleration to the downside. 

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.

Leave a Reply

Your email address will not be published. Required fields are marked *