Comex High Grade Copper Futures (HG) Technical Analysis – August 25, 2015 Forecast

December Comex High Grade Copper futures are trading better shortly before the cash market opening. The market is recovering because of calmer conditions in Asia and the early stock market strength. Technical factors are also contributing to the rally. Oversold conditions and a five-year low are encouraging short sellers to take profits and aggressive counter-trend traders to initiate long positions.

The main trend is down according to the daily swing chart. The pre-market rally has helped form a new minor range between 2.4350 and 2.2025. The makes its 50% level at 2.3190 a new target today. Trader reaction to this price should determine the direction of the market today and perhaps over the near-term.

Taking out 2.3190 will signal that the buying is getting stronger. The next target over this price is a downtrending angle at 2.3350. Since the main trend is down, buyers may come in on the initial test of this angle. If they take it out with conviction then look for a possible acceleration into the next downtrending angle at 2.3850.

If sellers come in to defend the trend at 2.3190 then look for another break with the first targets at 2.2605 and 2.2440. This is followed by a steep downtrending angle at 2.2350, yesterday’s low at 2.2025 and the April 28, 2009 bottom at 2.1740.