Comex High Grade Copper Futures (HG) Technical Analysis – June 10, 2015 Forecast

Oversold conditions and a drawdown in LME copper stocks helped turn the trend up on the July Comex High Grade Copper chart. The current chart pattern suggests the market is poised to retrace the break from the early May high to the early June low.

The main range is 2.5540 to 2.9560. Its retracement zone is 2.7550 to 2.7075. The overnight price action has put the market on the strong side of the upper or 50% level at 2.7550, giving it an early upside bias today. The retracement zone levels are new support along with a long-term uptrending angle at 2.6990.

The short-term range is 2.9560 to 2.6700. Its retracement zone at 2.8130 to 2.8470 is the primary upside target. A pair of Gann angles pass through this zone at 2.8310 and 2.8440, making them potential upside targets also.

The tone of the session is likely to be determined by trader reaction to 2.7550. The daily chart indicates there is plenty of room to the upside with the minimum target a 50% level at 2.8130. The target on the downside is a Fibonacci level at 2.7075. This current rally is likely short-covering. New buyers may step in if 2.2075 is tested.