Comex High Grade Copper Futures (HG) Technical Analysis – October 16, 2014 Forecast

Despite the drop in the U.S. Dollar, December Comex High Grade Copper futures dropped dramatically on Wednesday, putting the market in a position to take out the recent main bottom at 2.9855. A failure at this level should trigger a break into the April 15 bottom at 2.9660.

The daily chart opens up under 2.9660 with the March 19 bottom at 2.8845 the next likely downside target. This price is also the low of the year.

The short-term range is 3.2120 to 2.9855. The retracement zone formed by this range is 3.0990 to 3.1255. The rally this week to 3.1045 took the market into this zone where sellers came in because of the downtrend.

The best resistance is a combination of the high at 3.1045, the downtrending angle at 3.1020 and the 50% level at 3.0990.

The selling pressure also put copper on the weak side of uptrending angles at 3.0855 and 3.0355. These prices are also new resistance.

On the downside, minor support angles come in at 3.0105 and 2.9980, followed by a minor bottom at 2.9895 and a main bottom at 2.9855.

Trader reaction to the uptrending angle at 3.0105 will set the tone for the day.