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Market Profile – Case For Copper

The AMS Market Profile Tool – The Case For Copper

By: The Mark-It Wizard

Following up on last week’s article describing the power of the AMS Market Profile tool I put in motion something we’ll post every week (as time allow).  Today, the first of these “drill down” analyses covers a futures contract we are currently trading, copper.

Copper is in the forefront both technically as well as fundamentally.  COVID-19’s announcement drove the price of this metal down to levels seldom seen in the past.  With a recovery beginning to take hold copper is in play effected by the rate of recovery, the Dollar and interest rates.  If the recovery gains strength the price increases.  If the Dollar drops, copper goes up in price.  If interest rates increase substantially  the price will be under pressure but interest rates at this time have little effect.

With that in mind let’s take a look at what the Market Profile charts depict for everything from a monthly to 30-minute chart then you make the call.  We are buyers on dips with an expected move from current levels around $3.00 to $3.50 or higher.  Remember, everything is volatile so keep your powder dry and wait for the right opportunity to enter the market in either direction. If you want to discuss this or other AMS products email me.

 

Copper – Monthly

 

Above is a chart for copper that begins around January 2012.  It’s largest spike on the histogram is pretty much right where it closed.  With support underneath we turn our attention to a low point on the histogram, you remember water flows from higher to lower points.  Thus we expect copper to rise over the next period unless the recovery is stifled or the Dollar increases substantially.

 

Copper – Weekly

 

Pretty much the same thing is observed in the weekly charts.  That makes us smile.  While we look at shorter term charts, for us to become excited about selecting and trading a futures contract, up or down, visualization similarities between the weekly and monthly Market Profile charts are important and that is what we have.

 

Copper – Daily

 

Other than illustrating the strength of the recent support area being built, because of the sell off due to COVID-19 the prognosis of this chart would be negative.  Copper has given us a ride lately due to economic concerns related to the COVID pandemic but with the worst behind us this is not a problem.  It’s going higher; if it dips, be a bigger buyer.

 

Copper – 30-Minute

All this short term chart illustrates is that the price of copper has found a bottom.  Solid support below its close, closing higher than the highest histogram point and a trough overhead says it’s time for buyers to step in.

Hey everyone again “gee but it’s great to be back home”.  Niels is my business partner and Danny is my hero.  We at AMS Trading Group are in the final stages of building our own platform.  Currently we rely upon NinjaTrader something we knew had to change.  Incorporated into our long term strategy is a symbiotic relationship with MrTopStep.  Keep watching both sites to see us in action.  I am more of the long term trader with Niels being more akin to how Danny trades.

Me. known as The Mark-It Wizard, The Wizard or just David serve as your primary contact.  If you have any questions send me an email at david@amstradinggroup.com or just follow us on the site.  We’re happy to help you get your feet wet with the AMS Trading Group products and trust we will be a beneficial source for all of your trading needs.

 

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