Market Leader informed
In November-December numerous analytic agencies summarize the results of the year and make forecasts for the next year. In particular, in mass-media articles and releases one can find various forecasts for the future price on copper. Experts of the Department of Market Sentiment Analysis, Masterforex-V Academy, offer their own forecast for the copper futures based on the techniques taught and used at the department.
The price of the copper futures (HG) is currently staying close to the historic high ($4.26), which is a stimulus to perform constant monitoring of the situation. The November up-bar with wide spread and high volume (max volume over the last 7 years) suggests that the big-scale players start taking profit. Defining the further trend will become possible as soon as there are mere signs of one of the variants.
Let’s have a closer look at the situation by studying the Daily chart of the futures. There is a series of down-bars at high volumes – the place of big-scale sales. The momentum pushed the trend to $4-4.15, but the bar of the last week looks like a spike, i.e. the sales continue while the buyers are getting fewer. The process of asset distribution may last a couple of weeks and lead to a retracement down to $3.6-3.7, and maybe even $3.2.
However the wave of the overall energy-source price growth is unlikely to give copper a wide berth. That is why on reaching $4.2 at signs of market strength one may expect the copper futures to reach $4.7- 4.9.
Source: Market Leader
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