Comex High Grade Copper Futures (HG) Technical Analysis – August 24, 2015 Forecast

Turbulence in the Asian markets is driving December Comex High Grade Copper futures lower in Monday’s pre-market session. The selling pressure drove the market through the May 14, 2009 bottom at 2.2440. The downside momentum is strong, but traders should still be careful selling weakness because of the possibility of a technical bounce.

Breaking through then recovering 2.2440 will indicate that the selling pressure was fueled by sell stops rather than fresh shorting. The next target over this level is a downtrending angle at 2.2550. This is followed closely by another downtrending angle at 2.2705.

A sustained move over 2.2705 will signal the presence of buyers. This may create enough upside momentum to trigger a sharp move to the upside with the next target dropping in at 2.3450.

A sustained move under 2.2440 later today will indicate that the selling is real and getting stronger. This could trigger a further break into the April 28, 2009 main bottom at 2.1740.

Look for the selling pressure to continue throughout the session as long as the Asian stock markets continue to weaken. The selling may extend into the U.S. session if U.S. stock markets sell-off sharply.

Watch the price action and read the order flow at 2.2440. This should tell us whether the bulls or the bears are in control.