Comex High Grade Copper Futures (HG) Technical Analysis – August 24, 2016 Forecast

December Comex High Grade Copper futures fell to their lowest level since June 24 on Wednesday as rising inventories in Asian warehouses fueled fears about weaker demand to come in top consumer China. Current data indicates a huge inventory rise in Asian warehouses. This suggests China is exporting its surplus. Additionally, a surge in mine supply in the first half of the year has translated into excess refined metal.

Technically, the main trend is down according to the daily swing chart. Its nearest main bottom is the June 9 bottom at $2.0315. A trade through $2.2000 will turn the main trend to up.

The current downside momentum suggests the next target is a long-term uptrending angle at $2.0980.

On the upside, crossing back over the major Fibonacci level at $2.1290 will indicate the presence of buyers. If buyers can sustain the move then look for the rally to extend into the nearest resistance angle at $2.1600.

Volume is expected to be below average so be careful selling weakness and buying strength. You may get whip-sawed.