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

Sellers continue to pound December Comex High Grade Copper, putting the market in a position to challenge the April 28, 2009 main bottom at 2.1740. Short-sellers are still in control despite weaker than expected inflation data from China which could lead to additional stimulus.

Technically, the main trend is down according to the daily swing chart. This was reaffirmed when the September 29 main bottom at 2.2255 was taken out. The new main top is 2.3620. A trade through this level will turn the main trend to up.

Based on the close at 2.2300, the key angle to watch is a steep downtrending angle at 2.2020. Trader reaction to this angle will determine the strength of the market today.

Crossing to the weak side of the angle at 2.2020 will put copper in an extremely bearish position. It will indicate that copper is dropping at a rate of .04 per day from the 2.3620 main top. This puts it on pace to test the April 2009 bottom at 2.1740 by tomorrow.

A sustained move over 2.2020 will indicate that the short-sellers are lightening up, or that buyers are starting to show up because of oversold conditions.

Watch the price action and read the order flow at 2.2020 today since this will determine the direction of the market. Pay close attention to the volume on the selling because it should be increasing if sellers are going after 2.1740.