December Comex High Grade Copper futures are trading flat shortly before the regular session opening. Oversold conditions are helping to boost prices over the short-term. The longer-term still looks bearish due to expectations of lower demand from China. A general sell-off in the global commodities markets is also weighing on prices.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $3.0315 will signal a resumption of the downtrend with the October 3 bottom at $2.9260 the next major downside target.
A trade through $3.1365 will change the main trend to up.
The main retracement zone is $3.0930 to $3.0535. The market is currently straddling this zone. Trader reaction to this area could determine the longer-term direction of the market.
The short-term range is $3.2595 to $3.0315. If there is a breakout over $3.1365 then look for a test of its retracement zone at $3.1450 to $3.1720.
Daily Technical Forecast
Based on the current price at $3.0670 and the earlier price action, the direction of the copper market today is likely to be determined by trader reaction to the main Fibonacci level at $3.0535.
A sustained move over $3.0535 will signal the presence of buyers. This could lead to a labored rally into a downtrending angle at $3.0865 and a 50% level at $3.0930. This is followed by a long-term downtrending angle at $3.1345 then $3.1365.
A sustained move under $3.0535 will indicate the presence of sellers. This is followed by Friday’s low at $3.0315. Breaking through this price could lead to a test of a downtrending angle at $3.0095.
Crossing to the weak side of the angle at $3.0095 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next major target coming in at $2.9260.
Look out for low volume and try not to get trapped aggressively buying and selling breakouts because both volume and volatility are expected to come in below average.