Comex High Grade Copper Futures (HG) Technical Analysis – October 22, 2014 Forecast

After testing support early in the session, December Comex High Grade Copper futures rallied late, finishing at the first retracement zone objective. The strong close has put the market in a position to continue the move today. Look for an early upside bias, but be aware that the main trend is down and shorts like to re-enter the market inside retracement zones.

The short-term range is 3.1045 to 2.9515. Its retracement zone at 3.0280 to 3.0460 is the primary upside objective of the current rally. On Tuesday, the lower or 50% level at 3.0280 was tested when the market traded to 3.0355. A sustained move over 3.0280 is likely to lead to a rally into the upper or Fibonacci level at 3.0460.

A downtrending angle comes in at 3.0445, making it and the Fib level at 3.0460 the best upside target today. The daily chart opens up over this zone with a pair of downtrending angles at 3.0745 and 3.0820 the next two possible targets.

On the downside, support comes in at 3.0115, followed by the angle that stopped the break on Tuesday at 2.9815. The last angle before the main bottom is 2.9665.

The tone of the market today will be determined by trader reaction to the 50% level at 3.0280.