Whilst the precious metals collapsed and turned heavily bearish, copper too is having its own battles to maintain the bullish trend of the last few weeks which has propelled it from the low of mid September at $2.064 lbs to the high of October at $2.216 lbs. Yesterday’s price action was not as dramatic as for its more illustrious near neighbours, but nevertheless added a bearish tone, as copper closed back on the volume point of control which has moved up to this congestion region at $2.168 lbs, and denoted with the yellow dashed line.
Above we have a high volume node in the $2.21 area, and coupled with the deep area of price congestion above, combined to bring the move higher to a halt and capping further gains. In early trading copper has moved marginally lower once again to trade at $2.1635 at the time of writing, and with the price action now firmly anchored around the VPOC, we can expect to see the price consolidate in the region in the short term.
By Anna Coulling