Comex High Grade Copper Futures (HG) Technical Analysis – August 7, 2015 Forecast

September Comex High Grade Copper futures closed lower on Thursday after consolidating for the third session after reaching a new low for the year at 2.3215 on August 3. Investors could be waiting for more guidance from the Fed regarding the timing of its interest rate hike. This may happen after the release of today’s U.S. Non-Farm Payrolls report.

Investors may also be waiting for the next major economic report from China. Either way, the current price action suggests impending volatility so investors should start preparing for an acceleration. The direction is uncertain at this time.

The first upside target is a long-term downtrending angle at 2.3590. The next potential resistance is a short-term downtrending angle at 2.3750.

The main trend is down on the daily swing chart. The short-term range is 2.4460 to 2.3215. Its pivot is 2.3840. This price is controlling the short-term direction of the market. Taking it out with conviction could trigger a breakout to the upside with the main top at 2.4460 the next target.

A trade through 2.4460 will turn the main trend to up on the daily chart. A move through this price could create enough upside momentum to challenge the main retracement zone at 2.4885 to 2.5275.

If the selling pressure is strong enough to take out the minor bottom at 2.3215 then look for a possible extension of the move into the May 14, 2009 bottom at 2.2440.

The direction and tone of the market today will likely be determined by trader reaction to the pivot at 2.3840.