Comex High Grade Copper Futures (HG) Technical Analysis – August 13, 2015 Forecast

After reaching a new contract low on Wednesday, September Comex High Grade Copper futures rebounded enough to produce another potentially bullish closing price reversal bottom. This was the second reversal bottom this week, suggesting the presence of buyers.

A trade through 2.3580 will confirm the chart pattern. The short-term range is 2.4290 to 2.2925. Its pivot is 2.3610. This is the first upside target following the reversal, which doesn’t leave much room to rally above 2.3580. However, it is also a trigger point for an acceleration to the upside with the next targets a pair of tops at 2.4290 and 2.4460.

A trade through 2.4290 will turn the main trend to up on the daily chart. This could trigger a further rally into the nearest downtrending angle at 2.4950.

Today’s session is all about momentum. The main trend may be down, but the reversal bottom suggests a shift in momentum to the upside. A failure at the pivot at 2.3610 will indicate that the buying is not that strong. Falling back under a pair of long-term downtrending angles at 2.3350 and 2.3190 will suggest that yesterday’s rally was another “fake out”.

A sustained move under 2.3190 could pressure the market to take out yesterday’s reversal at 2.2925. This could trigger an acceleration into the May 14, 2009 bottom at 2.2440.

The direction of the market the rest of the session will be determined by trader reaction to the short-term pivot at 2.3610. Taking out this level with conviction then sustained the move could trigger a huge rally over the near-term.