Comex High Grade Copper Futures (HG) Technical Analysis – August 17, 2015 Forecast

September Comex High Grade Copper futures are trading lower shortly ahead of the regular session opening. Despite last week’s volatile trading action, the pre-market price action is relatively calm, but with a downside bias.

Last week, traders produced a breakout to the upside to 2.4290 and to the downside at 2.2925. The mid-point of this range is 2.3610. The price is controlling the short-term direction of the market. Currently, copper is trading below this number, giving it a downside bias.

The first targets are a pair of long-term downtrending angles at 2.3150 and 2.2990. They could provide support, but crossing to the weak side of these angles will put the market in an extremely bearish position.

Taking out 2.2925 will negate the closing price reversal bottom. This could trigger an acceleration into the May 14, 2009 bottom at 2.2440. This is followed by the April 28, 2009 bottom at 2.1740.

Crossing to the strong side of the short-term pivot at 2.3610 will indicate the presence of buyers. A sustained move over this level could trigger a surge into last week’s high at 2.4290. A trade through this level will turn the main trend to up on the daily chart.

Based on the current price at 2.335, look for a bearish tone as long as the market remains under the pivot at 2.3610. Be prepared for a strong breakout if 2.3610 is taken out with better-than-average volume.