Comex High Grade Copper Price Futures (HG) Technical Analysis – October 3, 2017 Forecast

December Comex High Grade Copper futures are trading higher early Tuesday after investors came in to stop the selling and defend a pair of bottoms. The market has been consolidating for almost two weeks at and inside a major retracement zone.

The price action suggests that investors believe copper is in a bull market, but that prices may just be a little ahead of the fundamentals. This usually happens with the hedge funds get too aggressive.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $2.9925 will signal a resumption of the uptrend. This could launch a rally into the main retracement zone at $3.0365 to $3.0700.

A trade through $2.9050 will change the main trend to down. This could send the market into the next main bottom at $2.8940.

Support is currently layered under the current price. The main support is a retracement zone inside $2.9150 to $2.8525. Inside this zone are main bottoms at $2.9050, $2.8940, $2.8935 and $2.8795.

Daily Forecast

Based on the current price at $2.9615 (0909 GMT) and the earlier price action, the key support angle is at $2.9115 and the key resistance is $2.9290.

Earlier in the session, copper held a test of the uptrending angle at $2.9115 and is currently testing $2.9290.

Overcoming $2.9290 will indicate the buying is getting stronger with the next target a long-term downtrending angle at $2.9785. This angle is the trigger point for an acceleration to the upside with the next major target coming in at $3.0365.

The inability to overcome $2.9290 will indicate the presence of sellers. This could drive the market back into the support angle at $2.9115.

Look for a labored sell-off if $2.9115 fails because there is a cluster of support levels inside $2.9150 to $2.8525.

The longer-term momentum is likely to shift to the upside if buyers can take out $2.9785 with conviction.