After the amazing bullish run late last year Copper has been consolidating. I am now getting ready for the possibility that the correction is soon to be completed and looking for long set-ups. This wave count is by no means an expert wave count or meant to be exact but conveys my idea that there was a motive wave followed by a three wave correction (labeled ...
Copper has been trading in a channel lately, and in a couple of trades we profited by the bounce on the descending trendline (magenta in the chart). Indicators look still quite bearish while the triangle pattern might suggest a continuation pattern high as I think it will go this direction but let's wait for confirmation. Be ready for action!
Cooper finished initial correction as wave A, and is now in wave B. The B wave is expected to be choppy. Short could be started to build above 2.76. However, if it traded in/above the red box for a extended period of time,short should be covered. There is going to be big risk of impulsive extension.
Whilst diagonal trendlines are geometrically certain to break, they are also rather difficult to trade, looking very obvious ex-post, but hard to pull the trigger on ex-ante. In this case, I am inclined to take the signal given I have traded the vicissitudes of Copper quite well, particularly in the past 6 months.