Comex High Grade Copper Futures (HG) Technical Analysis – November 4, 2015 Forecast

December Comex High Grade Copper futures finished higher on Tuesday, supported by falling stockpiles and bets that China’s efforts to stimulate its economy will fuel an improvement in demand. Signs are emerging including a pick-up in housing prices and some stabilization in PMIs, that China’s monetary easing measures are feeding a recovery in the economy that could spur a pickup in consumption in the world’s top user of copper.

Technically, the main trend is down according to the daily swing chart.

The main range is 2.2255 to 2.4375. Its retracement zone is 2.3065 to 2.3315. The market had been straddling this zone for several days establishing a support base.

The new short-term range is 2.4375 to 2.2885. Its retracement zone at 2.3630 to 2.3805 is the primary upside target.

Based on yesterday’s close at 2.3305, the key level to watch early in the session is the 50% level at 2.3315. Trader reaction to this price should set the tone for the day.

A sustained move over 2.3315 will indicate the presence of buyers. The first upside objective is a downtrending angle at 2.3475. This is followed by a longer-term uptrending angle at 2.3555 and a short-term 50% level at 2.3630.

The 50% level at 2.3630 is a possible trigger point for an acceleration to the upside. This could lead to a test of the Fibonacci level at 2.3805.

A sustained move under 2.3315 will signal the presence of sellers. This could trigger a break into the nearest uptrending angle at 2.3085.

Watch the price action and read the order flow at 2.3315 today. Trader reaction to this level will tell us whether the pulls or the bears are in control.