Comex High Grade Copper Futures (HG) Technical Analysis – October 7, 2015 Forecast

December Comex High Grade Copper futures are trading slightly better during the pre-market session. The uptick to 2.3790 took out the closing price reversal top at 2.3765, negating the potentially bearish chart pattern. Buyers are still having trouble with a short-term retracement zone. Trader reaction to this zone will likely determine the direction of the market over the near-term.

The weaker U.S. Dollar and short-covering because of oversold conditions are helping to underpin the market. The absence of Chinese traders because of the week-long holiday may also explain the lack of sellers.

The main trend is down according to the daily swing chart. However, momentum has been to the upside since September 29.

The short-term range is 2.4930 to 2.2255. Its retracement zone at 2.3595 to 2.3910 is currently being tested. Trader reaction to this zone will likely determined the direction of the market over the near-term.

Based on the current price at 2.3745, look for an upside bias today as long as the 50% level at 2.3595 holds as support. The first upside objective is the Fibonacci level at 2.3910. This is also a potential trigger point for an acceleration to the upside with the next targets coming in at 2.4230 and 2.4320.

A sustained move under the 50% level at 2.3595 will indicate the presence of sellers. However, any selling is likely to be labored because of a downtrending angle at 2.3530 and an uptrending angle at 2.3455.

The daily chart is wide open under 2.3455. Taking out this level with conviction on better-than-average volume could trigger a steep break into an uptrending angle currently at 2.2855.

Watch the price action and read the order flow at 2.3595. Trader reaction to this price will tell us whether the bulls or the bears are in control.