Comex High Grade Copper Price Futures (HG) Technical Analysis – Gann Angle at $3.1860 Controlling Direction Today

December Comex High Grade Copper futures tumbled for a third day on Thursday after growth data from China came out in line with expectations. Chinese quarterly GDP posted a gain of 6.8%, equaling the forecast, but slightly below the 6.9% previous read.

Growth in the world’s biggest metals market looked set to accelerate this year after coming in steady during the third quarter, but efforts to cut risks in property and debt were beginning to weigh on the economy.

In other news, industrial production in September rose by a faster than expected 6.6 percent year on year and fixed-asset investment expanded by 7.5 percent in the first nine months of the year, missing forecasts.

Property sales dropped for the first time in more than 2 ½ years in September while housing starts slowed, reinforcing expectations that robust growth is cooling.

Prices are falling because traders are looking for fresh news. They may get direction from the Communist Party Congress that began on Wednesday.  It meets every five-years to determine China’s policy direction.

Daily Technical Analysis

The market sold-off for a third day, challenging an uptrending Gann angle in the process. This angle, moving up at a rate of .02 per day from the $2.9260 main bottom comes in at $3.1860 on Thursday.

Overcoming the angle at $3.1860 will indicate the return of buyers. If this creates enough upside momentum, we could see a move into a pair of previous main tops at $3.2245 and $3.2415, followed by the high for the week at $3.2595.

The daily chart indicates there is plenty of room to the downside if $3.1860 fails as support. The next uptrending angle and possible downside target comes in at $3.0560. Since the main trend is up, we could see a technical bounce on the first test of this angle.