Comex High Grade Copper Futures (HG) Technical Analysis – November 5, 2015 Forecast

December Comex High Grade Copper futures hit its lowest level since September 30 early Thursday. The main driver behind the drop in prices was related to hawkish speeches from several Fed officials, the stronger U.S. Dollar and a greater possibility of a Fed interest rate hike in December.

The main trend is down according to the daily swing chart. The earlier price action reaffirmed the down trend when it took out the main bottom at 2.2885. It also made 2.3620 a new main top. A trade through this level will turn the main trend to up.

The main range is 2.2255 to 2.4375. Its retracement zone is 2.3315 to 2.3065. The market is also trading on the weak side of this zone, giving it a strong downside bias. These two levels are new resistance.

Finally, another sign of selling pressure is the break below the long-term uptrending angle at 2.2930. This is another sign of increasing selling pressure. It is also a resistance angle.

Based on the current downside momentum, the next target is another slower-moving angle at 2.2595. This is the last potential support angle before the 2.2255 main bottom.

Look for the downside bias to continue today as long as copper remains under 2.2930.

For longer-term traders, a breakout to the upside by the U.S. Dollar is likely to trigger an acceleration to the downside with the April 28 main bottom at 2.1740 the next major downside target.