Comex High Grade Copper Futures (HG) Technical Analysis – October 17, 2014 Forecast

December Comex High Grade Copper futures are set to finish the week lower following yesterdays hard sell-off. The move took out a minor bottom at 2.9895 and a main bottom at 2.9855 before breaking through the April 15 bottom at 2.9660. Although the market settled above this level, the momentum created by the move suggests more downside action over the near-term.

The first resistance angle comes in at 2.9845. Since the main trend is down on the daily chart, expect sellers to show up when this angle is tested. Additional angles come in at 3.0445 and 3.0745. The main trend will turn up when 3.1045 is taken out.

On the downside, a sustained move through the April 15 bottom at 2.9660 will be a sign of weakness. This move will likely set the market on a path toward the March 19 bottom and low for the year at 2.9945.

Trader reaction to 2.9660 will likely set the tone for the day.