Comex High Grade Copper Futures (HG) Technical Analysis – February 10, 2016 Forecast

March Comex High Grade Copper futures are trading higher shortly before the regular session after reaching its lowest level since January 26 earlier in the session. The earlier technical bounce occurred after a successful test of a key Fibonacci level.

The main trend is up according to the daily swing chart. The main range is 1.9355 to 2.1380. Its retracement zone is 2.0365 to 2.0130. Earlier today, the market tested the lower, or Fib level before making a low at 2.0115.

Based on the earlier price action, the direction of the market the rest of the session is likely to be determined by trader reaction to the Fib level at 2.0130.

Holding above 2.0130 will indicate the presence of buyers. Overtaking and holding above the uptrending angle at 2.0155 will indicate that the buying is getting stronger. This could trigger a surge into the 50% level at 2.0370.

Crossing to the strong side of the 50% level at 2.0370 will put the market in a bullish position with 2.0580 the next likely target. This angle is also the trigger point for an acceleration to the upside with the next target coming in at 2.0980.

A sustained move under 2.0130 will indicate the presence of sellers. The daily chart is wide open to the downside with 1.9810 the first target followed by an uptrending angle at 1.9755.

Watch the price action and read the order flow at 2.0130 today. Trader reaction to this level will tell us if