Comex High Grade Copper Futures (HG) Technical Analysis – November 16, 2015 Forecast

December Comex Copper futures slipped to a fresh six-year low early in the session on Monday. Renewed risk aversion due to the attacks in Paris lifted the U.S. Dollar, pressuring dollar-denominated copper prices. Another reason for the weakness is demand due to the struggling global economy.

Technically, the main trend is down according to the daily swing chart. The downtrend was reaffirmed late last week when the futures contract took out the April 28, 2009 main bottom at 2.1740.

The next potential targets are 2.1520 and 2.1220.

On the upside, the first target is the old bottom at 2.1740. There could be a technical bounce on the first test of this level since “old bottoms tend to become new tops”. A sustained move over this level will likely mean a further rally into a steep downtrending angle at 2.2020.

There is a bright spot today in the market. Today’s session begins with the market down 8 days from the November 4 main top at 2.3620. This puts copper in the window of time for a potentially bullish closing price reversal bottom. If this occurs, it is not likely to be because of a change in the fundamentals to bullish, but rather because of profit-taking and aggressive short-covering.