Comex High Grade Copper Futures (HG) Technical Analysis – October 29, 2014 Forecast

December Comex High Grade Copper rallied for the seventh day on Tuesday. Although it reach a major retracement zone that could turn into a resistance area, the upside momentum was strong enough to put the market in a position to challenge the October 14 main top at 3.1045. A trade through this level will turn the main trend to up on the daily chart.

The main range is 3.2120 to 2.9515. The retracement zone formed by this range is 3.0820 to 3.1125. Currently, copper is trading on the strong side of the lower or 50% level at 3.0820, making this level early support.

A failure to hold 3.0820 will indicate selling pressure, but don’t expect an acceleration to the downside unless the downtrending angle at 3.0570 fails to hold as support. This could trigger a fast break into the next uptrending angle at 3.0315.

Holding the 50% level at 3.0820 will be a sign that buyers are coming in to support the market. This could lead to a change in trend over 3.1045. Overtaking the steep uptrending angle at 3.1115 will signal the buying is getting stronger. This could easily lead to a breakout over the Fibonacci level at 3.1125.

The final targets today are angles at 3.1345 and 3.1735. These are the last two angles before the main top at 3.2120.

The tone of the market today will be determined by trader reaction to the 50% level at 3.0820.