HG_F (Copper) is up more than 4% this week and the rally from 12/5 (2.942) low started off in a choppy fashion but has gained enough legs to take the form of an impulse. In this blog, we will take a look at Elliott Wave labelling of the rally from 12/5 low in Copper metal. Below is a 1 Hour chart of HG_F (Copper)
HG_F (Copper) 1 Hour Elliott Wave Analysis 12.20.2017
We can see that wave ((i)) ended at 2.9885, dip to 2.951 completed wave ((ii)), rally to 3.0645 completed wave (i) of ((iii)), pull back to 3.032 was wave (ii) of ((iii)) which was followed by upside extension towards 3.147 which completed wave (iii) of ((iii)). Dip to 3.114 completed wave (iv) of ((iii)) and metal is currently in wave (v) of ((iii)). We can see 3 swings up from wave (iv) low so we are expecting 1 more high above 3.212 to complete wave (v) of ((iii)). This should be followed by a pull back in wave ((iv)) which could be a zig-zag, double three or a triangle. In either case, wave ((iv)) should be a corrective pull back followed by another rally to complete wave ((v)) and hence an impulse higher from 12/5 low. As per Elliott Wave Theory, after a 5 wave move completes, we should see a 3 waves pull back at minimum to correct the 5 waves rally and then at least 1 more leg higher in 5 waves unless the initial 5 waves rally is part of a FLAT correction. Therefore, after a couple more highs towards 3.228 – 3.2559 area, we are expecting HG_F (Copper) to pull back and correct the rally from 12/5 (2.942) low and then extend higher again. Ideally any pull backs should now stay above the rising trend line as a break of the trend line would suggest at least wave ((iii)) is already in place and a break of the pivot at 3.0645 wave ((ii)) low would be needed to suggest that cycle from 12/5 (2.942) low has ended already. Please note that the larger structure is proposed to be a diagonal which is why we are labelling 5 waves up from blue (2) low as an A rather than wave 1 of (3).