Comex High Grade Copper (HG) Futures Technical Analysis – April 16, 2014 Forecast

July Comex High Grade Copper futures are called better this morning after successfully testing a retracement zone on Tuesday. This price action could mean the market is range bound, or a secondary higher bottom has been reached, signaling the start of a fresh rally.

The main range is 3.2280 to 2.8720. The retracement zone of this range is 3.0500 to 3.0920. The lower or 50% level has provided resistance for the past two weeks.

The short-term range is 2.8720 to 3.0690. Its retracement zone is 2.9705 to 2.9475. This area was tested on Tuesday when the market traded as low as 2.9605.

An uptrending Gann angle, moving at a pace of .005 per day from the .005 bottom, provided support yesterday. This angle moves up to 2.9720 today and forms a support cluster with the 50% price at 2.9705.

How traders react to 2.9705 will determine the tone of the market today. Holding above it will give copper an upside bias while a break below it could trigger a move into 2.9475 then 2.9220.

A rally thorough the 50% level at 3.0500 will be nice, but we’ve seen it before. The daily chart suggests traders are going to have to take out 3.0925 with conviction before the shorts are all taken out and the new buyers take control. Savvy traders should take a look at the CFTC’s Commitment of Traders to see if the shorts or the longs are in control.