Comex High Grade Copper Futures (HG) Technical Analysis – November 3, 2015 Forecast

December Comex High Grade Copper futures posted a potentially bullish closing price reversal bottom on Monday. Early in the session, the market sold off when China released a weak economic report. Because of the prolonged break in terms of price and time, the market was ripe for a reversal to the upside. Additionally, oversold conditions may have helped it turn into a sell the rumor, buy the fact situation.

The main trend is down according to the daily swing chart, however, yesterday’s closing price reversal may have shifted momentum to the upside. The chart pattern doesn’t mean the trend is getting ready to change to up, but it could trigger the start of a 2 to 3 day rally equal to at least 50% of the last sell-off.

The main range is 2.2255 to 2.4375. Its retracement zone is 2.3315 to 2.3065. The market is currently straddling this zone. Trader reaction to this zone will likely determine the direction of the market over the near-term.

Based on the close at 2.3190, the first upside target is yesterday’s high at 2.3230. A trade through this level will confirm the closing price reversal bottom. The next target is the main 50% level at 2.3315. This is a potential trigger point for an acceleration to the upside with the next target a long-term uptrending angle at 2.3505.

The daily chart will open up to the upside on a sustained move over 2.3505. This could trigger an eventual test of the short-term retracement zone at 2.3785 to 2.3925.

A sustained move under the main Fibonacci level at 2.3065 will indicate the presence of sellers. This could trigger a break into the closing price reversal bottom at 2.3190. Taking out this level will negate the chart pattern.

The next target under 2.3190 is a long-term uptrending angle at 2.2880. There could be a technical bounce on the first test of this angle, but if it fails then look for an acceleration to the downside into another uptrending angle at 2.2570. This is the last potential support angle before the 2.2255 main bottom.

Watch the price action and order flow at 2.3230 today. A sustained move over this level will give copper a bullish tone. A sustained move under this level will give the market a bearish tone.