Comex High Grade Copper Futures (HG) Technical Analysis – August 4, 2015 Forecast

September Comex High Grade Copper is trading better shortly ahead of the cash market opening. On Monday, sellers took out the previous main bottom at 2.3375. This triggered a move into a new low for the year at 2.3215.

The selling dried up at 2.3215, leading to a short-covering rally into the close. It wasn’t strong enough to produce a closing price reversal bottom, but it did recover more than half of the break. Overnight, an attempt to make a new low was thwarted, leading to more short-covering and a strong rally into today’s regular session opening.

The main trend is down according to the daily swing chart. The short-term range is 2.4460 to 2.3215. Its 50% level or pivot is 2.3840. This is followed closely by a pair of downtrending angles at 2.3890 and 2.4050.

Since the main trend is down, sellers are likely to come in to defend the trend on tests of the resistance levels. However, traders should prepare for an acceleration to the upside if 2.4050 is taken out with conviction. A sustained move over this angle could trigger a move into the next main top at 2.4460.

Taking out 2.4460 will turn the main trend to up on the daily chart. The main range is 2.6550 to 2.3215. The next major target over 2.4460 is its retracement zone at 2.4885 to 2.5275.

Currently, the market is trading at 2.3665. This is giving copper an early upside bias, however, the direction and tone of the market the rest of the session is likely to be determined by trader reaction to the short-term pivot at 2.3840.