Copper (HG) Analysis with the Market Profile

Copper (HG) Analysis with the Market Profile

The following article continues the previous analysis of the copper futures market based on the recent price developments. The analysis has been implemented with the Sierra Chart template utilising the weekly market profile in combination with the volume profile.

Analysis
After being rejected on the downside, the market made a strong long push and built a range in a volatile market the past weeks (1). Last week, the market performed a strong long push accompanied by several single print areas (2) indicating buyer strength. However, the market got hold at a later stage and significant volume was created (3) illustrating seller strength. The price moved short again and closed at the initial range.
Copper HG Futures Market Analysis with the TPO Chart by UC Trading

Considering a buyer perspective, the copper market may trade above the range with a first target at the last weeks rejected area at around $2.45 - $2.47 (4). In contrast, the single print areas around $2.34 - $2.37 illustrate a resistance zone. Should the market illustrate weakness and sellers are able to gain dominance the resistance zone may be broken to the downside with a first target at the old range from March / April (5).