Comex High Grade Copper Futures (HG) Technical Analysis – December 8, 2016 Forecast

March Comex High Grade Copper futures are trading slightly higher on Thursday after recovering from an early session setback. Volume is light again and the market is still trading inside Monday’s wide range. This indicates investor indecision and impending volatility. There is a slight bias to the downside this week.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is flat to a little lower. A trade through $2.5505 will turn the main trend to down. A move through $2.7130 will turn momentum back to up. A move through $2.7530 will signal a resumption of the uptrend.

The short-term range is $2.7530 to $2.5505. Its retracement zone at $2.6520 to $2.6755 is currently acting like resistance. Overtaking this zone will also indicate a shift in momentum to the upside.

The intermediate range is $2.4350 to $2.7530. Its retracement zone at $2.5940 to $2.5565 is the next downside target. This zone provided support last week when the market reached its low at $2.5505.

The main range is $2.0970 to $2.7530. Its retracement zone is $2.4250 to $2.3475. If there is a sell-off then this zone will become the primary downside target.

Forecast

Based on the current price at $2.6490 and the earlier price action, the direction of the copper market today will be determined by trader reaction to the short-term 50% level at $2.6520.

A sustained move over $2.6520 will signal the return of buyers. This is followed by the short-term Fibonacci level at $2.6755. This is the trigger point for an acceleration to the upside with the next target a pair of uptrending angles at $2.7550 and $2.7770. Overtaking these angle will put the market in a bullish position.

A sustained move under $2.6520 will indicate the presence of sellers. The first downside target is a potential support cluster at $2.5950 to $2.5940. The daily chart opens up to the downside with the next targets $2.5565 to $2.5505. This is the trigger point for an acceleration into the next uptrending angle at $2.5150. This is the last potential support angle before the $2.4350 main top.

Watch the price action and read the order flow at $2.6520. Trader reaction to this level will set the tone for the day.