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Comex High Grade Copper Futures (HG) Technical Analysis – August 26, 2015 Forecast

By:
James Hyerczyk
Published: Aug 26, 2015, 07:12 UTC

December Comex High Grade Copper futures are trading lower during the pre-market session. On Tuesday, the market closed at the high end of the range, but

Daily December Comex High Grade Copper

December Comex High Grade Copper futures are trading lower during the pre-market session. On Tuesday, the market closed at the high end of the range, but there hasn’t been a follow-through move. The fundamentals are still bearish and the market is sensitive to outside influences like the volatility in the Chinese stock market. Because of this, buyers are going to be less aggressive. Any rallies are likely to be triggered by short-covering and bottom-pickers.

Daily December Comex High Grade Copper
Daily December Comex High Grade Copper

Earlier in the week, the market found support at 2.2025. This was below the 2.2440 bottom from May 14, 2009, but slightly above the April 28, 2009 bottom at 2.1740. Trading at 6 year lows made the market attractive to value-seekers.

The key areas to watch on the downside are 2.2505, 2.2440, 2.2025 and 2.1740. Holding these areas will indicate the presence of buyers.

The main trend is down, but momentum may be shifting to the upside. The new minor range is 2.4350 to 2.2025. Its 50% level at 2.3190 is the first upside target, followed closely by a downtrending angle at 2.3250. Since the main trend is down, look for selling on the first test of 2.3190 to 2.3250.

If 2.3250 is taken out with conviction then look for a possible acceleration to the upside with 2.3800 the next likely upside target.

The market may be forming a bottom, but it needs to form a solid support base or any rally will fail. The market may gain some support if the People’s Bank of China continues to take action to shore up its markets and improve its economy, but this is likely to lead to a short-lived move because of oversupply and low demand. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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