Comex High Grade Copper Futures (HG) Technical Analysis – November 12, 2015 Forecast

December Comex High Grade Copper futures are under pressure shortly before the regular session opening. The daily chart suggests that prices are headed into a six-year low. The catalysts behind the selling pressure are concerns about an economic slowdown in China and a possible interest rate hike by the Fed in December.

A recent report from China showed a drop in copper imports. Additionally, because of the slowing economy there is talk of additional stimulus from the People’s Bank of China. The European Central Bank is also considering more stimulus while an interest rate hike by the Fed will strengthen the U.S. Dollar, weakening demand for dollar-denominated copper.

Technically, the main trend is down according to the daily swing chart. The market is in no danger of changing the trend to up, but it is in the window of time for a closing price reversal bottom. This chart pattern will also not mean the trend is getting ready to turn, but it could trigger a 2 to 3 day counter-trend rally.

The first downside objective is the April 28, 2009 main bottom at 2.1740. Watch for a technical bounce on the first test of this level. The next downside target under this level is 2.1220.

On the upside, the first objective is a steep downtrending angle at 2.2420. Since the trend is down, sellers are likely to come in on the first test of this angle. It is, however, a trigger point for a further upside breakout.