Comex High Grade Copper Futures (HG) Technical Analysis – November 26, 2015 Forecast

March Comex High Grade Copper futures posted an inside move lower close on Wednesday while straddling a short-term 50% or pivot price. This typically indicates trader indecision and impending volatility. Oversold technical conditions are also helping to underpin the market.

The price action doesn’t suggest that the trend is getting ready to turn to up, but that the market may have run out of sellers at current price levels. The market could be setting up for a counter-trend rally into a retracement zone where it is likely to attract fresh shorting pressure. If there is a rally, it is likely to be triggered by profit-taking and short-covering.

The main trend is down. The short-term range is 2.1000 to 2.0020. Its 50% level or pivot at 2.0510 is currently controlling the short-term direction of the market.

The main range is 2.3695 to 2.0020. If enough momentum is generated by an upside breakout then the primary target is the retracement zone at 2.1860 to 2.2290.

Based on the close at 2.0520, the direction of the market today is likely to be determined by trader reaction to the short-term pivot at 2.0510 and the steep downtrending angle at 2.0495.

A sustained move over 2.0510 will signal the presence of buyers. The first upside target is the minor top at 2.1000. This price is the trigger point for the start of an acceleration to the upside with the main 50% level at 2.1860 the first potential upside target.

A sustained move under 2.0495 will indicate the presence of sellers. This could trigger a re-test of the low at 2.0020 or perhaps trigger another leg down.

Watch the price action and read the order flow at 2.0495 to 2.0510 today. Trader reaction to this area will tell whether the shorts are still in control, or if the buying is becoming stronger. Volume is expected to be down today because of the U.S. holiday and today’s shortened trading session so it is suggested that you don’t chase the market in either direction.