Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Expect Congestion For Copper In Short Term

Published 11/09/2021, 10:21 AM
Updated 07/09/2023, 06:31 AM
HG
-

Copper Daily Chart.

As I suggested in my post Oct. 27 entitled ‘Another false dawn for doctor copper,’ the price of copper has once again retraced and arrived back at the VPOC denoted with the yellow dashed line on the daily chart, which is now also providing a technical rescue point for the red metal – both in terms of volume and price.

First, we have the VPOC itself. It is where we have price agreement to use a market profile term. This is a region at which we have the heaviest volume on the VPOC histogram. Hence, it is a point at which we can expect to see further congestion develop in the short term, as indeed we saw last week.

Second, and immediately below the VPOC, we have a very strong platform of price-based support delivered from the accumulation and distribution indicator for NinjaTrader. This is the red dashed line, which, in combination with the VPOC, presents an extremely significant band of support in the $4.35 lbs area. However, the interesting point for the medium term is how rapidly the volume on the VPOC histogram begins to fall away once the price breaks the $4.45 lbs area. As such, we may well see a repeat of the price action of October with a rally through this level with only minor price-based resistance ahead at $4.41 lbs.

 

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.