Comex High Grade Copper Futures (HG) Technical Analysis – October 20, 2014 Forecast

December Comex High Grade Copper futures took out the April 15 bottom at 2.9660 last week. The daily chart suggested the market could decline into the March 19 bottom at 2.8845, but buyers came in at 2.9515 to produce a potentially bullish closing price reversal bottom.

The closing price reversal bottom does not mean the main trend is changing to up, but that the market is oversold and needs to chase out some of the weaker shorts before moving lower.

The short-term range is 3.1045 to 2.9515. Its retracement zone at 3.0280 to 3.0460 is the next likely upside target. Since the main trend is down, sellers are likely to come in to defend the trend.

Taking out 3.0125 will confirm the reversal bottom. The first downtrending angle target is 3.0245. If the retracement zone is taken out then look for the rally to continue into 3.0645.

The tone of the market today will be determined by trader reaction to 3.0125.

A trade through 2.9515 will negate the closing price reversal bottom and likely trigger an acceleration to the downside into the low for the year at 2.8845.