Metals and Copper
28 Mar 2021 ● 02:02 PM
Lots of questions on Metals Index naturally. And clues lie in commodity prices and the dollar. So looking at copper what do we see. A possible triangle pattern that may be forming just as copper prices bounced off the 40dema on Friday. Good support at 3.96 but will it hold? The resistance line is at 4.137
The weekly chart shows the possibility that I can mark 5 waves up on this chart. So the places I consider a correction is when wave 1 ended and now when wave 5 can end. If we continue to hold the channel and extend, then the wave count goes from 5 waves to 9 waves adding 4 more waves and extending higher. But we do not know that for sure as of now. Oil has still to correct in wave C down and so that gives us time to be sure. A correction that is deeper will not change the long-term trajectory but simply be a good technical setup to deal with longer-term. The weekly momentum below shows a sell signal at a double top for the indicator from where wave 1 formed at the end of this week as prices closed the week down despite Friday's bounce. Watch out for a possible deeper pullback first is what this suggests for now.