Comex High Grade Copper Futures (HG) Technical Analysis – August 18, 2015 Forecast

September Comex High Grade Copper broke to a new contract and multi-year low during the pre-market session. This is giving the market a downside bias that should carry over into the regular session opening.

A sustained move under the previous main bottom at 2.2925 could create enough downside momentum to fuel a break into the May 14, 2009 bottom at 2.2440. If this level fails then look for a possible extension into the April 28, 2009 bottom at 2.1740.

The current price is 2.2840. The direction of the market the rest of the session is likely to be determined by trader reaction to the previous bottom at 2.2925.

A sustained move over 2.2925 will signal the presence of buyers and that the earlier move was probably triggered by sell stops. Three downtrending angles could impede a rally, however. These come in at 2.2890, 2.3050 and 2.3290.

The angle at 2.3290 should act like resistance on the initial test. However, it is also a potential trigger point for an acceleration to the upside with the next target coming in at 2.3790.

Watch the price action and read the order flow at 2.2925 the rest of the session. This will tell us if the bulls or the bears are in control.