Copper: Market Profile / Auction Market Analysis

We have been highlighting Copper as a best opportunity for the past few client reports. This is a detailed breakdown of the entire thought process.

Long-Term Copper is trading below both the larger degree HVN as well as the HVN for 2014.

Copper_2014_11_18_LT

 

Below we can see a clear migration of VALUE to the downside. A close above 3.0480 would be needed before any consideration of a change in trend could be considered, basis this time frame.

Copper_2014_11_18_IT

 

Here is the profile / auction view from October – ┬áNovember to date.

Copper_2014_11_18_IT_2

 

Below is the daily bar chart with the Oct. – Nov. auction highlighted along with the HVN for that structure. The general guideline for trading mature auctions is to favor trades on the price side of the HVN. The conviction of 11/18 is an additional strong signal in this instance that the short side should be favored.

bar_1

 

Below is a 30-minute chart giving a view of executable situations with minor relative risk to the potential return of the much larger degree time frames.

bar_2