Copper Elliott Wave analysis
Copper has been advancing steadily since its August 7th low, with gains exceeding 14%. The commodity is poised for further upside, potentially reaching the 4.7 resistance level before a notable pullback occurs.
Looking at the broader picture, Copper has been in a long-term bullish trend since March 2020. During this time, a diagonal structure seems to be forming, with waves (I), (II), and (III) of the supercycle degree completing in March 2022, July 2022, and May 2024, respectively. Following this, wave (IV) began in May 2024 and found support in August 2024. There are now two possible scenarios for wave (IV). It may have completed as a zigzag structure or could extend into a double zigzag if the current rally fails to surpass the May 2024 high.
If the current bounce from August 2024 progresses as an impulsive wave, this would confirm the completion of wave (IV) and the initiation of wave (V). However, if the bounce unfolds as a corrective structure, a further leg lower for wave (IV) remains possible. The key level to watch is 4.62. A break above this level would confirm the long-term bullish continuation for wave (V). Conversely, if the rally fails to breach 4.62, the likelihood of further downside increases, favoring a prolonged wave (IV). Despite this, the overall bias remains to the upside until a definitive reversal occurs.
On the H4 chart, we are observing a dip for wave (4) of the primary degree wave 3 (circled). This pullback is anticipated to find support between the 4.43 and 4.36 levels. Once support is established, wave (5) is expected to push Copper higher, targeting the 4.62 to 4.7 range.
In conclusion, Copper remains in a long-term bullish trend, with the current bounce determining whether wave (IV) has ended or another leg down is required. Traders should watch for a break above 4.62 to confirm the next major upside move.
Technical analyst: Sanmi Adeagbo.
Copper Elliott Wave analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
AUD/USD corrects toward 0.6850, awaits US PCE Price Index
AUD/USD is falling back toward 0.6850 in Friday's Asian trading, reversing from near 19-month peak. A tepid US Dollar bounce drags the pair lower but the downside appears called by the latest Chinese stimulus measures, which boost risk sentiment ahead of US PCE data.
USD/JPY pares gains below 145.50 after Tokyo CPI inflation data
USD/JPY is paring back gains to trade below 145.50 in the Asian session on Friday, as Tokyo CPI inflation data keep hopes of BoJ rate hikes alive. However, intensifying risk flows on China's policy optimism support the pair's renewed upside. The focus shifts to the US PCE inflation data.
Gold price consolidates below record high as traders await US PCE Price Index
Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index.
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.