Comex High Grade Copper Futures (HG) Technical Analysis – August 19, 2015 Forecast
December Comex High Grade Copper futures plunged to a new contract low on Wednesday, signaling a weakening world economy. The break into a new multi-year low indicates that traders have already put last week’s devaluations by the People’s Bank of China in the past.
The main trend is down according to the daily swing chart. The downtrend was reaffirmed when last week’s closing price reversal bottom at 2.3015 was taken out. The trend will change to up when buyers take out the swing top at 2.4350.
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If the downside momentum continues over the near-term then look for the selling pressure to extend into the May 14, 2009 bottom at 2.2440. This level is a trigger point for an even steeper break with the April 28, 2009 bottom at 2.1740 the next likely downside target.
On the upside, the first target is a long-term downtrending angle at 2.3005. This is followed by a steeper, short-term angle at 2.3150. Since the trend is down, look for selling on the initial test of these angles. A sustained move over 2.3150 could trigger an acceleration into the next downtrending angle at 2.3750.
The direction of the market today is likely to be determined by trader reaction to yesterday’s low at 2.2645. Sellers are likely to come in hard and try to drive the market into 2.2440, or buyers are going to come in seeking value.