Comex High Grade Copper Futures (HG) Technical Analysis – October 9, 2014 Forecast

December Comex High Grade Copper futures tried to mount a rally early in the session, but sellers came in to drive the market lower at the close, following a test of a major downtrending angle. It finished slightly above the last main bottom, but may have enough downside momentum to continue the move early in today’s session.

On Wednesday, the market failed at the downtrending angle from the 3.2120 top. This angle drops in at 3.0420 today. This angle is both a resistance point and an acceleration point so traders have to watch the order flow if it is tested again today. The daily chart indicates that if this angle is taken out with conviction then the market could rally into the main retracement zone at 3.0990 to 3.1255.

The short-term range is 2.9855 to 3.0490. Its pivot price is 3.0170. This price is controlling the short-term direction of the market. The close below it puts copper in a weak position on the opening. Overcoming it will indicate that buyers have come in to support the market.

The first support angle is at 2.9980. This is also the last support angle before the main bottom at 2.9855. Taking out this level should trigger a break into the April 15 bottom at 2.9660. The daily chart opens up under this level with the next potential downside target the March 19 bottom at 2.8845.

The tone of the market today will be determined by trader reaction to the pivot at 3.0175.