Copper (HG) Analysis with the Market Profile

Copper (HG) Analysis with the Market Profile

The following article continues the previous analysis of the copper (HG) 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

Starting point was an earlier range (1) that has been tested but got rejected immediately (2). Subsequently, the market went long and finally closed above the previous weeks value area high indicating buyer dominance. However, the previous weeks high and low have not been tested (3) resulting in an inside week (4). Such phenomenons illustrate uncertainty in the market where a decision can be expected within the following week.

HG Copper Analysis with the Market Profile by UC Trading

Preferring a buyer perspective, the market can break the weeks high and continue to break to last weeks high (5) a sustainable breakout will clearly favour long positions. On the contrary, however, inside weeks may be targets for fake breakouts. Should the market fall back into last weeks range it can be considered a fake breakout with higher probability of falling prices (6). Should the market illustrate weakness right from the beginning the last weeks low can be considered a first short target (7).