Detailed Elliot Wave Analysis of Copper with Predictions
Updated
The recent rally in Copper prices sure feels like a wave 3. Volume is great. In wave 3 according to RN Elliot is usually the most powerful wave in a trend. Prices rise quickly and corrections are very short lived and shallow. Anyone looking to get in on a pullback will likely miss the boat. As wave three starts, the news is probably still bearish, and most market players remain negative; but by wave three's midpoint, "the crowd" will often join the new bullish trend. Wave three often extends wave one by a ratio of 1.618:1. This is where we are at currently at 1.618. Looks to me this is the End of wave 3. Anyone looking to get in should wait for wave 4 to play out which will provide a very good risk reward trade. And according to RN Elliot research Wave 5 is the largest in the commodities.
Note - If wave 4 Monthly closed anywhere in the price range of wave 1 this idea is invalid
This is my preferred count of Elliot wave Analysis on Copper. It’s a logarithmic chart. So we had a 15.5 years long Ending Diagonal which ended with a explosive breakout. Followed by Double Combo WXY. W was an Expanded Flat with C Wave going deep testing the breakout point of the Diagonal. And then X wave correction in three waves marked abc. And then the y wave which is the larger trend finished higher than W which is unusual case. I have given the subwave count of wave 1.
Subwave count of wave 3 :
Wave 1 finished at median line of pitchfork
Wave 2 was a running flat correction
Wave 3 almost kissed the 1.0 line of the pitchfork
Wave 4 correction was a symmetrical triangle broke out in the direction of B wave. It also comply with guide of alteration.
And looks like we my have just ended subwave 5 and Main wave 3 as you can see in the chart it has made a lower low on daily timeframe
Thank you for reading
Will appreciate your feedback
Note
Mistake - Rectangle was meant to cover WXY correction only
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