Since October 2023, Copper has gained over 8%. Meanwhile, the Elliott wave perspective is looking at this commodity to continue the giant corrective structure it started in March 2022. Copper is expected to resume a strong rally once the current minor dip is subdued by the bullish flow again. But the questions are, where can traders and investors look for opportunities and how strong can the rally from October 2023 go into the future? Let’s dive into our commodity Elliott wave analysis that covers Copper.

On the daily time frame chart, from March 2022, when the commodity was trading for nearly $5, we could identify the decline to 3.145 (July 2022 - a 38% decline in just 4 months) as a corrective wave. That fall was wild! However, the bullish response has been corrective and has taken over 1.5 years. As a result, we are forecasting a double zigzag blue wave ‘W-X-Y’ from 5.043 top. Wave W ended at 3.145 and wave X is subdividing into red wave (W)-(X)-(Y). Wave (W) closed at 4.3575 and (X) at 4.52 and (Y) is ongoing. Wave (Y), on its own, seems to be subdividing into black wave W-X-Y. We seemed to have completed wave W and X but Y is in the early stage. Thus, with Elliott wave theory, we have identified the position of the current price in the large scope of the last 2 years' price framework. Let’s head to the H4 chart to see where and how we can find a position.

On the H4 time frame chart, after wave X ended, the price advanced in a 5-wave rally. Good response! With the current decline coming out corrective, we will anticipate at least the blue wave ‘a-b-c’ of Y above the 4.00 medium level. Our focus will now be on how blue wave ‘b’ ends. The further decline for red wave (a)-(b)-(c) of blue b could continue to the 3.72 minor level which is also close to the 70.7% retracement of blue wave ‘a’. The setup will be invalid at 3.65 i.e. price below wave X.

In summary, our forecast supports the recovery of Copper to continue further upside. Therefore the current dip is expected to be corrective and stay above 3.65. Buying interest is expected to surge from there.

Copper daily chart

Copper four hour chart

Copper Elliott Wave analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.