March 27 Chart of the Day - Copper
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Copper futures (ticker /HG) are making headlines again this week because its price reached a new all time high (ATH) on Wednesday following a report that President Trump may enact tariffs on copper imports sooner than anticipated.
Some say it's because of the news while others are making the case for technical analysis.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 450+ Charts of the Day and provide FREE Price Action Trading education to traders who join our highly rated Trade Room.
Monthly Chart
On the monthly chart we can see that after reaching its all-time high of $5.374 earlier this month price seemingly is quickly fading back down.
With little to no prior price history at all-time highs, price often enters what we call a "discovery phase" to establish new market structure.
In this scenario, price appears to be speeding through the discovery phase (for now) and quickly fading back down towards previous and familiar price structure bypassing previous potential ATH support/resistant levels.
Volatility is a common price action behavior, though it tends to be unpopular among investors.
Weekly Chart
On the weekly chart we can see where price set its ATH before quickly dropping back down this week.
Why then when a chart makes ATHs can price quickly drop back down?
For a variety of reasons including maybe this was a case of traders and investors taking some profits off the table.
Regardless, it's clear to see that for more than fifteen years price has been making a series of higher highs and higher lows /aka/ an uptrend.
Technically speaking, there's potential upside targets north of $5.50.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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