Comex High Grade Copper Price Futures (HG) Technical Analysis – November 14, 2017 Forecast

December Comex High Grade Copper futures are trading lower shortly before the U.S. opening. Traders are reacting to disappointing economic data from China. Chinese Industrial Production came in at 6.2%, slightly below the 6.3% estimate. It was also lower than the previous read of 6.6%.

Fixed Asset Investment was 7.3%, matching the forecast. Retail Sales were also disappointing at 10.0%, below the 10.5% estimate. Foreign Direct Investment was 1.9%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since October 16. The price action since October 27 suggests buyers are trying to build as support base.

The new main bottom is $3.0585. A trade through this bottom will change the main trend to down. This could lead to the start of a steep sell-off since the next target bottom is $2.9280.

The main range is $2.9260 to $3.2595. Its retracement zone is $3.0930 to $3.0535. This zone has been providing support for almost three weeks.

The short-term range is $3.2595 to $3.0585. If the current rally gains some traction, we could see a test of its retracement zone at $3.1590 to $3.1830.

Daily Technical Forecast

Based on the current price at 3.1045 and the earlier price action, the direction of the copper market the rest of the session is likely to be determined by trader reaction to the main 50% level at $3.0930.

Holding above $3.0930 will indicate the presence of buyers. They will be trying to defend the uptrend. If they can create enough upside momentum then look for the rally to extend into $3.1590 then $3.1830.

A sustained move under $3.0930 will signal the presence of sellers. If sellers come in hard then look for a test of the main bottom at $3.0585, followed by the Fibonacci level at $3.0535.

The Fib level at $3.0535 is the trigger point for an acceleration to the downside.