Comex High Grade Copper Futures (HG) Technical Analysis – October 15, 2014 Forecast

After consolidating and building a support base the past two weeks, December Comex High Grade Copper futures finally broke out to the upside to reach its short-term objective. Since the main trend is still down according to the daily swing chart, sellers may come in to reload inside the short-term retracement zone.

The main range is 3.2120 to 2.9855. Its retracement zone and primary upside target is 3.0980 to 3.1255. The lower or 50% level at 3.0980 was tested on Tuesday when the market traded up to 3.1045. The close was high enough to put the market in a position to challenge this zone again today.

Besides 3.0980 and 3.1255, a downtrending angle passes through this zone at 3.1070, making it a valid upside target.

If the buying continues through 3.1255 then look for the rally to extend into the next angle at 3.1595.

If the rally into the resistance zone begins to attract selling pressure then look for a pullback into the uptrending angle at 3.0755. There could be a steep drop-off if this angle fails with 3.0355 the next potential target.

If the rally stalls at 3.1045 then look for a 50% retracement of the rally from 2.9855. This potential target is 3.0450.

The tone of the day will be determined by trader reaction to 3.0980.