Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Another False Dawn For Doctor Copper

By Anna CoullingMarket OverviewOct 27, 2021 10:19AM ET
www.investing.com/analysis/another-false-dawn-for-doctor-copper-200606513
Another False Dawn For Doctor Copper
By Anna Coulling   |  Oct 27, 2021 10:19AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Copper Daily Chart.
Copper Daily Chart.

It’s been another false dawn for copper, which continues to remain restricted to trading in a narrow range as each rally falters and weakens before reversing on the daily chart. It is a pattern we have seen repeated since May, with the volume point of control remaining the focus.

The breakaway from the VPOC promised much, with both the candles and volume of Oct. 13 and Oct. 14 looking bullish. Here, we had widespread up candles on excellent volume with no wicks to top or bottom. The price action of Oct. 15 then followed on equally strong volume, but with a wick to the upper body suggesting some short-term weakness. The following day this was confirmed, with the well-defined shooting star of Oct. 18 confirming the prior day’s signal. This was repeated on Oct. 19, with another strong signal of weakness on comparable volume. The price action on Oct. 20 then hinted at possible support before this was snuffed out the following day with a widespread down candle associated with good volume.

A weak attempt to rally has once again has been snuffed out, as bearish sentiment drives copper lower, with further bearish pressure today as the price moves towards the $4.40 lbs area. So the question now is where next for the price of copper?

The short answer is back to the volume point of control at $4.28 lbs, denoted with the yellow dashed line. There is a potential pause and support at the price-based level of $4.34 lbs denoted with the red dashed line of the accumulation and distribution indicator.

Copper Weekly Chart.
Copper Weekly Chart.

Moving to the weekly chart, this is interesting for a different reason. Once again it reveals the importance of considering different timeframes in any analysis. The important candle here is last week’s price action extending from the VPOC at $4.3lbs through to $4.70 lbs and beyond, but look at the volume. Is price and volume in agreement or disagreement?

The short answer is the latter, particularly when we consider the volume associated with the price action of the final week in February. The volume is significantly more, almost double, yet the price action is half. This gives us a benchmark to consider that sends a clear signal that last week’s move is a trap as the big operators are not participating. Hence, we can expect a reversal in due course, which is what we are witnessing now. It is an example of Wyckoff’s third law in action. This simple analysis confirms what we are now seeing for copper on the daily timeframe.

Another False Dawn For Doctor Copper
 

Related Articles

Another False Dawn For Doctor Copper

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email