Context
Copper seems to be respecting trendlines and trend channels on a daily timeframe. From there, I figured out what is the most probable wave counts, taking into considerations potential chart patterns. Given that we have definitely completed a 5-waves up (blue wave counts on daily timeframe to $3.3220) and the subsequent range motion has been erratic at best and can only be taken as corrective (as opposed to impulsive), my best guess is that we might be having an extended correction that is good for another leg.
Formulating the Idea
The recent 5-waves up (in orange) I have labeled as A-B-C-D-E. This is due to overlapping waves and the fact that these waves are clearer as 3-3-3-3-3. In Elliott Waves context, the structure can be termed as a triangle (although this is really more of a parallel trend channel). Remembering that a triangle only appears in the Elliott Waves structure as the 2nd-to-last wave, it gives further support to the expectation of a final leg down.
Measured-Move Objective
Using the last wave down (after "E) as the first sub-wave of the expected last wave (of a higher degree) and using Fibonacci extension measurement, we can see that Copper can be expected to first touch the channel support made by the A-B-C-D-E and then a further move down to touch another channel support made by the higher degree 1-2-3-4-5 waves - nicely at the 1.618x Fibonacci extension.
Copper seems to be respecting trendlines and trend channels on a daily timeframe. From there, I figured out what is the most probable wave counts, taking into considerations potential chart patterns. Given that we have definitely completed a 5-waves up (blue wave counts on daily timeframe to $3.3220) and the subsequent range motion has been erratic at best and can only be taken as corrective (as opposed to impulsive), my best guess is that we might be having an extended correction that is good for another leg.
Formulating the Idea
The recent 5-waves up (in orange) I have labeled as A-B-C-D-E. This is due to overlapping waves and the fact that these waves are clearer as 3-3-3-3-3. In Elliott Waves context, the structure can be termed as a triangle (although this is really more of a parallel trend channel). Remembering that a triangle only appears in the Elliott Waves structure as the 2nd-to-last wave, it gives further support to the expectation of a final leg down.
Measured-Move Objective
Using the last wave down (after "E) as the first sub-wave of the expected last wave (of a higher degree) and using Fibonacci extension measurement, we can see that Copper can be expected to first touch the channel support made by the A-B-C-D-E and then a further move down to touch another channel support made by the higher degree 1-2-3-4-5 waves - nicely at the 1.618x Fibonacci extension.
Trade closed: target reached:
First Target Reached.
Comment:
Note that Copper is now moving towards the 2nd target. I am expecting it to breach the support line. When it is near, lower the stop and if you have size, can take some out.
Trade closed: target reached:
Note that Copper has already hit 2nd target. It is time to long.