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#58 - Technical update (EW): Copper to mine to new depths?

Copper formed a bigger triangle formation since the beginning of 2022, which we interpret as an ABC correction in the long-term upward trend. We have been waiting for a break of that triangle to the downside to confirm our wave interpretation.

In September 2023, that break occurred, and prices dropped to 3.53 before finding support. Since then, we have seen a rebound back to the upward trendline at around 3.81, which now offers a very attractive risk/reward ratio for a short position. If prices are capped here as e expect, we anticipate another 5-wave leg down as part of the continuation of leg C, which began in January 2023. This leg should take us down to below 3.20 - the wave A low from July 22.

This move is also supported by our momentum score, which indicates a short-term overbought signal for copper.

The risk involves a break above the triangle resistance, and we would place a stop at a close above 3.91.

Spot: 3.772

Target: Below 3.20 Risk: 3.91 Risk/Reward: appr. 4:1

Good Luck.

Team MacrometR

No Financial Advice.


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