Comex High Grade Copper Futures (HG) Technical Analysis – August 21, 2015 Forecast

Despite the turmoil in China, December Comex High Grade Copper futures rallied sharply higher on Thursday. The fundamentals are bearish so the move was likely related to short-covering due to oversold conditions. Short sellers may have also been spooked out of their positions because of the surge in the precious metals markets and the drop in the U.S. Dollar.

Technically, the main trend is down according to the daily swing chart. A new minor range has formed between 2.4350 and 2.2625. Its 50% level or pivot is 2.3490. This level is today’s first upside target, followed by a downtrending angle at 2.3550.

On the downside, a pair of angles comes in at 2.2805 and 2.2750. Crossing to the weak side of 2.2750 will put the market in a bearish position with the first target 2.2625.

A trade through 2.2625 will signal a resumption of the downtrend with the first target the May 14, 2009 bottom at 2.2440. This is followed by the April 28, 2009 bottom at 2.1740.

The momentum may have shifted to the upside on Thursday. If so, then look for the rally to extend into at least 2.3490. Look for sellers to come in on a test of this level.

If sellers come in early then look for an acceleration to the downside under 2.2750.