Comex High Grade Copper Futures (HG) Technical Analysis – August 31, 2015 Forecast

December Comex High Grade Copper futures surged to the upside on Friday, taking the market to its highest level since August 14. Although the main trend is still down on the daily chart, a new main bottom has formed at 2.2025 and momentum has shifted to the upside. A trade through 2.4350 will turn the main trend to up on the daily chart.

The short-term range is 2.4350 to 2.2025. Its 50% level or pivot is at 2.3190. The close over this pivot also supports the shift in momentum to the upside. This price is essentially controlling the short-term direction of the market.

A sustained move over 2.3190 will signal the presence of buyers. This should trigger a rally into the next downtrending angle at 2.3650. This is followed by another angle at 2.4000.

The main range is 2.6605 to 2.2025. Its 50% level at 2.4315 is followed closely by the main top at 2.4350. A trade through this level will turn the main trend to up and likely lead to a test of a long-term downtrending angle at 2.4405.

A failure to hold the pivot at 2.3190 will signal the presence of sellers. The next target under this is a steep uptrending angle at 2.3025. The daily chart opens up under this angle with 2.2525 the next likely target.

Based on the close at 2.3460 and the strong upside momentum, the direction of the market today will likely be determined by trader reaction to the angle at 2.3650. Watch the price action and read the order flow at this angle. It will tell us whether the bulls or the bears are in control.