Comex High Grade Copper Futures (HG) Technical Analysis – October 2, 2014 Forecast

December Comex High Grade Copper futures broke through the June 12 bottom at 3.0095, but buyers came in at the psychological 3.000 level, to produce a potentially bullish closing price reversal bottom.

A trade through 3.0490 will confirm the closing price reversal bottom, but the actual acceleration to the upside is likely to occur if 3.0585 is taken out with conviction. If volume is behind the move then look for a fast rally into the downtrending angle at 3.0920.

The main range is 3.2120 to 3.000. The retracement zone formed by this range at 3.1060 to 3.1310 is the best upside target. Since the main trend is down on the daily chart, look for sellers to come in and defend the trend on a test of this area.

On the downside, taking out 3.000 will negate the closing price reversal bottom. This should create enough downside momentum to trigger a break into the April 15 bottom at 2.9660.

The tone of the market today is likely to be determined by trader reaction to the angle at 3.0585.