Comex High Grade Copper Futures (HG) Technical Analysis – October 5, 2014 Forecast

December Comex High Grade Copper finished unchanged while posting an inside move. This is often indicative of trader indecision, or in this case a possible transition from bearish to bullish. What we do know for certain is this chart pattern tends to indicate impending volatility so be prepared for an expanded range.

Last week’s low was 2.9855. Holding this level and overcoming the June 12 bottom could drive the market higher. Profit-taking, short-covering and some speculative buying will be the main drivers of any upside action. The main target is a downtrending angle at 3.0720.

If 2.9855 fails as support then look for a test of the April 15 bottom at 2.9660 early in the session. If the selling momentum is strong enough then the next target is the steep downtrending angle at 2.9320. Crossing to the weak side of this angle will put copper in an extremely weak position.

The daily chart indicates there is plenty of room to the down side with the March 19 bottom at 2.8845 the next major downside target. This is also the low for the year.

The first support on the weekly chart comes in at 2.9570. The nearest resistance angle drops in at 3.0545.

The tone of the day is likely to be determined by trader reaction to 2.9855. The market may straddle this price several times before traders make up their minds. Watch for a possible upside breakout over 3.0095 and a breakdown under 2.9660.