Comex High Grade Copper Futures (HG) Technical Analysis – October 24, 2016 Forecast

December Comex High Grade Copper futures are trading higher, but struggling to hold on to gains as traders are being forced to deal with the rising U.S. Dollar and expectations of ample supply next year. Helping to underpin the market is the news of tighter supplies in China.

In other news, hedge fund and money managers moved to a net short position in copper, according to the U.S. Commodity Futures Trading Commission. It is the first time the speculator group has been net short in a month.

Technical Analysis

The main trend is down according to the daily swing chart. The market isn’t close to turning the main trend to up, but it is in the window of time to form a potentially bullish closing price reversal bottom.

Last week’s low at $2.0845 is the first support target. This is followed by the September 12 main bottom at $2.0640. The daily chart opens up under this bottom with the next target the June 9 bottom at $2.0315.

On the upside, a trade through $2.1115 will turn the minor trend to up.

Forecast

Based on the early price action and the current price at $2.0920, I’m looking for an upside bias to develop on a sustained move over $2.1015 and for the downside bias to continue on a move through $2.0830.

A sustained move over $2.0920 could drive the market into $2.1125. This is the trigger point for an acceleration to the upside with the next major target a resistance cluster at $2.1390.

A sustained move under $2.0830 indicates the presence of sellers with $2.0640 the next target, followed by $2.0590.