Comex High Grade Copper (HG) Futures Technical Analysis – March 13, 2014 Forecast

Posted March 13, 2014 12:13 (GMT) |By FX Empire Analyst - James Hyerczyk | Print | Font Size
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Technical Reports

May Comex High Grade Copper futures are trading lower, but in a position to move higher following Wednesday’s closing price reversal bottom. The chart pattern suggests the buying may be greater than the selling pressure at current price levels. Oversold conditions rather than a shift in the fundamentals is the likely catalyst behind the move.

The closing price reversal bottom chart pattern does not mean the trend is getting ready to turn higher, but it often indicates the market is getting ready for a 2 to 3 day counter-trend rally typically equal to at least 50% of the current break.

A trade through yesterday’s high at 2.9815 will confirm the chart pattern and could launch the start of the correction. The first angle to take out today is at 2.9955. This move will give the market room to rally since the next angle is at 3.1155.

The current range is 3.2355 to 2.9080. This range has created the best upside target in the retracement zone at 3.0710 to 3.1105.

Yesterday’s range was 2.9080 to 2.9815, creating a 50% level at 2.9450. If there isn’t enough upside momentum to confirm the closing price reversal bottom then look for copper to straddle 2.9450 several times today. Holding this level will indicate that buyers are coming in.