We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
Real Time News
  • Recent polls have put Conservatives ahead of Labour and given a boost to $GBP. Get your #Brexit update from @ZabelinDimitri here: https://t.co/l2n53C0cYY https://t.co/oTWfXkaDDt
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/xeromAGqqx
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/rCOG78QQ2M
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your market update from @IlyaSpivak here: https://t.co/4lHhHsby56 $XAUUSD https://t.co/JmZxckVHdS
  • Cable (GBP/USD) remains just off its seven-month high print around 1.3165 as traders start to move to the side lines ahead of next Thursday’s General Election vote. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/CpCh13J9ZH #Brexit https://t.co/PIh6WUqbsK
  • (Weekly Technical Outlook) GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD Outlook as UK Election Looms $GBPUSD $EURGBP $GBPJPY #UKelection2019 - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/GBPUSD-EURGBP-GBPJPY-GBPCAD-Outlook-as-UK-Election-Looms.html?CHID=9&QPID=917702 https://t.co/iuILHYczJ7
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
  • By issuing debt denominated in $USD, China is making a long-term bet that it will be cheaper to pay back its loans over time in the US Dollar; it believes the value of the US Dollar will fall. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/xV9urXXf48
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
  • #Dow Jones stages impressive recovery on a firm NFP report. #FTSE 100 eyes UK general election. Get your equities technical analysis from @JMcQueenFX here: https://t.co/o28UcG6N3l https://t.co/SwGAaFCFND
Elliott Wave Analysis for Copper Prices Suggests Weakness May Be Temporary

Elliott Wave Analysis for Copper Prices Suggests Weakness May Be Temporary

2018-08-01 01:36:00
Jeremy Wagner, CEWA-M, Senior Strategist

Elliott Wave Copper Talking Points:

  • Current Elliott Wave for copper is wave 2 of a larger bullish impulse wave
  • Alternate counts for copper prices suggest the downward correction may linger on but hold above the 2016 low
  • Multiple Elliott Wave patterns target 4.10 and possibly higher levels over the long term in copper

For the past two months, copper prices have been falling hard down nearly 20% since the beginning of June 2018. With the effects of trade wars creating waves through the market, the higher probability move according to Elliott Wave theory is for support to emerge soon pushing copper prices towards 4.10.

What Elliott Wave are we in now?

Pulling out to a weekly chart for copper, we can count an Elliott Wave impulsive move beginning in January 2016. This impulse wave has terminated so according to Elliott Wave theory, we can anticipate a three wave correction to unfold to lower levels labeled A-B-C. It is possible this downward correction is over and support for copper prices may emerge as the proposed wave (2) can be counted as an Elliott Wave flat correction.

If that is the case, then we will look for a wave (3) to unfold to the upside surpassing the January 2018 high and pressure 4.10.

Long term copper forecast with elliott wave analysis included.

One alternate Elliott Wave count we are watching is the current low in copper price is wave ‘A’ of (2). This implies a larger flat pattern unfolding in the near term and suggests a rally back to 3.17 to 3.46 in wave ‘B’ of the flat.

There is another alternate that suggests the current low in copper price is wave ‘W’ of a complex correction. The result of this pattern would be similar to the chart above with the biggest difference being copper may correct to slightly lower levels.

The Elliott Wave forecast described above is valid so long as copper prices remain above the 2016 low of 1.94. It is important to understand that wave (2) can correct deeper in the near term. There is some congestion surrounding the 2.50 mark so a dip into that zone would be considered normal.

Please note it has been a long time (nearly 10 months) since we published our previous Elliott Wave analysis for copper. A lesson one can take away from that report “Beginning of a New Down Trend?” is how Elliott Wave theory can help you identify the maturity of the trend as copper prices did fall into the cited zone a few days later.

What are the fundamental factors affecting copper prices? Copper is a key market that has been caught in the cross fire of trade wars.

Copper Elliott Wave FAQs

How do I know where to start counting Elliott waves?

This is one of the most common questions asked of Elliott Wave theory. I look for discernable patterns that tip me off where the trend is at within the Elliott Wave sequence. For example, discernable patterns I look for include the 5-3 pattern, equal wave pattern, and Elliott Wave triangles. In the example above there was an ‘X’ wave triangle (in 2012) that suggests the entire 2010-2016 downtrend is corrective and likely to be retraced. Therefore, when an impulse wave develops, this is the first major clue that the 2016 low is an important low. As a result, we can begin counting our Elliott Wave from the 2016 low.

For more on this topic, review our Elliott Wave trading webinar “how do you begin counting waves”.

How does Elliott Wave theory work?

Elliott Wave theory is a trading study that identifies the highs and lows of price movements on charts via wave patterns. Traders analyze the waves for 5-wave moves and 3-wave corrections to determine where the market is at within the larger pattern. Additionally, the theory maintains three rules and several guidelines on the depth of the waves related to one another. Therefore, it is common to use Fibonacci with Elliott Wave analysis together. We cover these topics in our beginners and advanced Elliott Wave trading guides.

---Written by Jeremy Wagner, CEWA-M

Jeremy Wagner is a Certified Elliott Wave Analyst with a Master’s designation. Jeremy provides Elliott Wave analysis on key markets as well as Elliott Wave educational resources. Read more of Jeremy’s Elliott Wave reports via his bio page.

Communicate with Jeremy and have your shout below by posting in the comments area. Feel free to include your Elliott Wave count as well.

Follow on twitter @JWagnerFXTrader .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.