Comex High Grade Copper Futures (HG) Technical Analysis – October 19, 2016 Forecast

December Comex High Grade Copper futures rebounded from early weakness in response to the weaker U.S. Dollar and the news that China’s GDP had come in at 6.7% as expected. One concern for traders was the Industrial Production number that come in at 6.1%, down from 6.3% and missing the 6.4% estimate.

Oversold conditions are also playing a role in today’s turnaround, but the move in the dollar probably played the biggest role in the turnaround.

Technical Analysis

The main trend is down according to the daily swing chart. The market is far from turning the trend to up, but we are in the window of time for a closing price reversal bottom.

If today’s low fails then $2.0640 is the next target. If there is a reversal and a follow-through move then the retracement zone at $2.1450 to $2.1750 will become the next upside target.

Forecast

Holding above $2.0980 will indicate the presence of buyers. This could generate the upside momentum needed to challenge the uptrending angle at $2.1315. This is the trigger point for an acceleration into $2.1450 then $2.1590.

A failure to hold $2.0980 will signal the presence of sellers. Crossing to the weak side of the downtrending angle at $2.0890 will put the market in an extremely bearish position with $2.0640 the next likely target.