In this technical blog we’re going to take a quick look at the Elliott Wave charts of COPPER ( $HG_F) published in the membership area of the elliottwave-forecast  . As our members know, COPPER is showing impulsive sequences within the cycle from the March 1.974 low. We got 3 waves pull back , that unfolded as Elliott Wave Double Three Pattern.  The pair reached Equal Legs – Blue Box and found buyers at that area as we expected. In further text we’re going to explain the forecast and Elliott Wave Pattern.

Before we take a look at the real market example, let’s explain Elliott Wave Double Three pattern.

Elliott Wave Double Three Pattern

Double three is one of the most common pattern in the market these days, also known as 7 swing structure. It’s a very reliable pattern which is giving us good trading entries with clearly defined invalidation levels and target areas.The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree.

You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.

COPPER 1 Hour Elliott Wave Analysis 07.31.2020

COPPER wave 4 red pull back is unfolding as Elliott Wave Double Three Pattern. At this stage  we assume that correction still incomplete.  First leg of correction ((w))  ended as 3 waves, then we got 3 waves recovery labeled as ((x)) connector. As far as the price stays below (x) blue high and 2.9826 pivot holds. We expect to see another leg down toward 2.8346-2.752 ( buyers area ) which would be  7th swing down from the peak. At that area we expect buyers to appear for proposed rally or 3 waves bounce at least. We don’t recommend selling the commodity and would like to be buyers at the proposed blue box area.  As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.

 

COPPER 1 Hour Elliott Wave Analysis 08.3.2020

COPPER made another leg down.  The commodity found buyers right at the upper level of the 2.8346-2.752 ( Blue Box area). So far bounce is still shallow, but we see possibility that wave 4 pull back can be done at 2.8304 low. Last leg down ((y)) black also has corrective sequences. So we assume that 4 red pull back has Double Three structure.We need to see further separation from the lows. As soon as the price reach 50 fibs against the (x) blue high, we will make long positions risk free ( put SL at BE)

COPPER 1 Hour Elliott Wave Analysis 08.4.2020

Eventually we got separation higher as expected. Now all long positions are risk free. Current view suggests short term cycle from the 2.8304 low ended as 5 waves rally and now we’re correcting it. The price must stay above 2.8304 to keep this count valid. Otherwise deeper correction can be in progress. Once short term pull back ((ii)) black ends, we would like to see further rally and ideally break of 07/13 peak to confirm next leg up is in progress.

Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.

Hello fellow traders. In this technical blog we’re going to talk about Copper. As our members know, Copper has incomplete bullish sequences in the cycle from the March 19th low. Break of 04/16 peak made cycle from the March (1.9715) low incomplete to the upside. The commodity is now bullish against the 2.1475 low. Consequently, we advised our members to avoid selling the pair , favoring the long side.  Recently the pair has found buyers after completing Elliott Wave Expanded  Flat Pattern.In further text we’re going to explain the forecast and Elliott Wave Pattern.

Before we take a look at the real market example of Expanded Flat, let’s explain the pattern in a few words.

Elliott Wave Expanded Flat is a 3 wave corrective pattern which could often be seen in the market nowadays. Inner subdivision is labeled as A,B,C , with inner 3,3,5 structure. Waves A and B have forms of corrective structures like zigzag, flat, double three or triple three. Third wave C is always 5 waves structure, either motive impulse or ending diagonal pattern. It’s important to notice that in Expanded Flat Pattern wave B completes above the start point of wave A, and wave C ends below the ending point of wave A which makes it Expanded. Wave C of expanded completes usually close to 1.236 Fibonacci extension of A related to B, but sometimes it could go up to 1.618 fibs ext.

You can learn more about Elliott Wave Flats and other Patterns at our Free Elliott Wave Educational Web Page.

At the graphic below, we can see what Expanded Flat structure looks like.

 

Now, let’s take a look at real market example and see what that pattern looks like.

COPPER 1 Hour Elliott Wave Analysis 04.30.2020

Current view suggests Copper is still doing pull back against the 2.1497 low. Wave (b) blue made break above previous high, so wave ((b)) pull back can be unfolding either as Expanded flat or running flat. Anyway, we expect to see 5 waves down in (c) blue wave, and rally toward new highs.As we mentioned above in expanded flats, wave (c) leg completes usually between 1.236 -1.618 Fibonacci extension of (a) related to (b). In this case that area comes at 2.3255-2.2825.

COPPER 1 Hour Elliott Wave Analysis 05.04.2020

COPPER made price structure that is characteristic for bullish Expanded Flat. Wave (b) completed above the start point of wave (a), and wave (c) ended below the ending point of wave (a). The price reached proposed Fibonacci extension zone at 2.3255-2.2825 and making turn. Current view suggests as far as the price stays above last low, wave ((b)) pull back can be completed at 2.2834 low as expanded flat. Now we need to see further separation higher, and break above April 30th peak to confirm next leg up is in progress. As we keep saying Flat patterns can get tricky to trade, as sometimes get too extended , when 1.618 fib extension becomes less reliable.

COPPER 1 Hour Elliott Wave Analysis 05.08.2020

2.2834 low hes held nicely during the short term pull backs and we got further rally as expected. We got break above April 30th peak, confirming next leg up is ideally in progress.  Copper has scope to extend up toward 2.534-2.625 ( equal legs from the 19th March low).

Keep in mind that market is dynamic and presented view could have changed in the mean time.  Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.