This post takes a look at how we can trade and go short on copper. There is a very simple setup to take if the price does what I expect it to do. On the daily time frame, Price has managed to give a deeper rejection than I had anticipated in my last copper post, You will see that we are currently rejecting a resistance level on the daily, If you wanted to, you could add fib tool in order to add more confluence. We also have confirmed lower lows and lower highs and I would like to see the current structure price shorting opportunities to go with the overall trend.
On my trading time frame, the Price is now facing a minor support level at 3.3800 which could give a short-lived rejection. I would then like to see the break below the level and retest so we can start looking for shorts. Because I am anticipation a new low on the commodity I will be holding my position all the way to 1.3100. The basic break and retest setup is what I will be waiting for on this one.
Looking at the flip side, the current near-term trend is still bullish and It could break the resistance shifting structure all the way bullish. Remember the smaller time frames eventually build into the higher timeframes. I will only be interested in buying above 3.4470.
Trading metals is very popular within our trading industry. Gold, silver, copper, etc are all very profitable trading pairs. If you have a strategy that you employ that you feel works well in the commodities and metals market, then you should stick to that strategy and pair until you feel confident and comfortable using it.
On that note, be sure to keep an eye out for this one. Until the next post.
Prediction Analysis Overview Table
|Analysis Overview Information||Prediction Analysis information|
|On what market is this position based (Forex, Stocks, Crypto, Indices, or Commodities)?||Commodities|
|What is the trading position identifier (Name and/or Symbol)?||Copper|
|Is this a Short or Long Position?||Short|
|Would this be considered a Short Term, Medium Term, or Long Term trade?||Long Term|
|As a Short, Medium, or Long Term trade, which best describes the position (Scalping, Day Trading, Swing Trading, or Position Trading)?||Swing Trading|
|What Time Frame chart is the position based on (1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Daily, or Weekly chart)?||4-Hour|
|Depending on the asset, how much do you expect it to move in price or percentage?||From Entry to Target – 7.33%|
|What ratio of risk to reward is this trade/position? Choose your appropriate target(s)||Approximately 4 to 1 Target 2 N/A Target 3 N/A|
|What were the technical analysis tools used? Tick the appropriate boxes;||☐ Chart Patterns ☐ Indicators ☒ Price Action ☒ Support & Resistance ☐ Trendlines|
|From the technical analysis tools and indicators provided, tick the appropriate boxes for the tools and indicators used to analyze the position;||☐ Ascending Triangle, ☐ Bollinger Bands, ☐ Candlesticks, ☐ Channel, ☐ Cup & Handle, ☐ Descending Triangle, ☐ Double Bottom, ☐ Double Top, ☐ EMA, ☐ Fibonacci Retracement, ☐ Flag, ☐ Head & Shoulders, ☐ MA, ☐ MACD, ☒ Order Blocks, ☐ Pennant, ☐ Rounding Top Or Bottom, ☐ RSI, ☐ Symmetrical Triangle, ☒ Volume, ☐ Wedge|
Trading Prediction Success Probability Score
FSP ranks the probability of this trade a 5/10
- Wait for the break of structure
- Retest after break of structure
WATCH OUT FOR
- No break
- Bullish continuation
Disclaimer: The FSP probability score is derived from adding and subtracting the positive and negative aspects of the position and is not a definitive sign of how the trade will play out. FSP is not in any way a financial advisor