Comex High Grade Copper Futures (HG) Technical Analysis – November 25, 2015 Forecast

March Comex High Grade Copper futures posted a strong gain on Tuesday, putting it in a position to breakout over a steep, downtrending angle that had been guiding the market lower since the 2.3695 top on November 4. The catalyst behind the move was the weaker U.S. Dollar and oversold technical conditions.

The main trend is down according to the daily swing chart. However, momentum could be shifting to the upside with the formation of a new minor bottom at 2.0020.

The minor range is 2.1000 to 2.0020. Its 50% level or pivot is 2.0510. This zone is also controlling the short-term direction of the market. Based on the close at 2.0690, however, the direction of the market today is likely to be determined by trader reaction to the steep downtrending angle at 2.0695.

A sustained move over 2.0695 will signal the presence of buyers. This may create enough upside momentum to challenge the November 20 minor top at 2.1000.

The main range is 2.3695 to 2.0020. If buyers continue to come in over 2.1000 then its retracement zone at 2.1860 to 2.2290 becomes the primary upside target over the near-term.

A sustained move under 2.0695 will indicate the presence of sellers. This could trigger a move into the pivot at 2.0510. Buyers are going to try to provide support on a test of this level in an effort to produce a secondary higher bottom. Sellers are going to try to drive the market through this level in order to generate enough downside momentum to challenge the 2.0020 main bottom.

Watch the price action and read the order flow at 2.0695 today. Trader reaction to this level will tell us if the buyers or the sellers are in control today.