Comex High Grade Copper Futures (HG) Technical Analysis – February 12, 2016 Forecast

March Comex High Grade Copper futures are trading higher shortly before the cash market opening. The market is recovering somewhat after a steep sell-off earlier in the week. Currently, the market is trading inside a major retracement zone. Trader reaction to this zone is likely to determine the near-term direction of the market.

The main trend is up according to the daily swing chart. The main trend will turn down on a trade through 1.9810. Yesterday’s low at 1.9985 may have been caused by buyers coming in to defend the trend.

The main range is 1.9355 to 2.1380. Its retracement zone is 2.0370 to 2.0130. The market is currently trading inside this zone. Trader reaction to this zone may determine the longer-term direction of the market.

The short-term range is 2.1380 to 1.9985. Its retracement zone at 2.0685 to 2.0850 is the primary upside target.

Based on the current price at 2.0310, the direction of the market the rest of the session will likely be determined by trader reaction to the 50% level at 2.0370.

A sustained move over 2.0370 will signal the presence of buyers. This could trigger an acceleration to the upside since the next major targets don’t come in until 2.0685 and 2.0780.

The inability to overcome 2.0370 will indicate the presence of sellers. The initial break could be labored, however, because of an uptrending angle at 2.0255 and a downtrending angle at 2.0180.

Crossing to the weak side of the Fibonacci level at 2.0130 will put copper in a bearish position with the next minor target yesterday’s low at 1.9985.

Yesterday’s low at 1.9985 is also the trigger point for an acceleration to the downside with the next targets the main bottom t 1.9810 and an uptrending angle at 1.9805.

Watch the price action and read the order flow at 2.0370 today. Trader reaction to this level will tell us if the bulls or the bears are in control.