Copper has had a strong run over the last 3 weeks and is now pausing. When that happens invariably the bears see a pullback coming and the bulls see consolidation before the next move higher. But what do those that look at the price action as truth see? Starting with the daily chart below the consolidation after the move off of the bottom near 3.42 is evident. The Relative Strength Index (RSI) is technically overbought but the Moving Average Convergence Divergence indicator
(MACD) is positive. The flag building could break either way with a Measured Move higher to 4.14 and then 4.30 higher and a retest of the breakout of the symmetrical triangle at 3.65 below. Rather than predicting what will happen lets move out to the weekly view to see more clues. This time using Elliott Wave analysis shows that Wave (3) of motive Wave (V) is underway. It is required to reach at least 4.30 to be as long as Wave (1) and a 161.8% move of Wave (1) would take it to
4.92. Now that is bullish. Looking at the RSI and MACD on this timeframe shows that both support a move higher. Need more confirmation that the ultimate move is to the upside. The 3-box reversal Point and Figure chart carries a price objective of 8.25. And you thought that 4.92 was out there!
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