Hello traders! Today we will talk about metals, specifically Copper.
Metals are in a big rally and everyone is looking for a potential resistance, especially on Gold and Silver! But, Gold and Silver are quite unclear at this stage and it's hard to predict, where are they going to stop, so in our opinion, it's always good to take a look at correlated markets and in this case we see Copper with the clearest pattern, so it's worth to keep an eye on!
Well, we are tracking a big A-B-C expanded 3-3-5 flat correction, where wave C can be finishing the final wave (5). Ideal resistance would be around 2.90-3.00 levels and this is when Gold and Silver may also find the top of wave 5/C!
That said, metals are long-term bearish and current recovery it's just as part of correction, so don't fall in love with bulls, because bears may show up very soon!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
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UPDATE: Seems like Copper wants to see 3.0 area before any bearish reversal, so watch out for another leg, maybe the final wave 5 towards ideal 61,8% Fibo.retracement and 3.0 - 3.05 area. Just keep in mind that only a sharp and impulsive decline back below 2.87 can be a signal of a bearish reversal.
@Dguaman, Can be yes. GOLD is already turning sharply bearish and there's room for more, so Copper may easily follow. But, it's strongly recommended to wait for confirmations, so only if we see a five-wave bearish reversal back below 2.75, only then we can confirm a completion of a big expanded flat.
btM_Afta
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@ew-forecast, So only join to the party if we break 2,75 ??
ew-forecast
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@Dguaman, It all depends on your trading strategy. Some traders are patient and wait for confirmations, which is strongly recommended, but some of them are aggressive one and join at top.
btM_Afta
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@ew-forecast, Im thinking to sell now with TP at 2,79-2,80 SL 2,95
ew-forecast
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@Dguaman, If you want to enter here at potential top, then stops should be much higher, because top may not be in place yet. That's why is recommended to enter after a confirmation, because then you know at least where to place stops.
btM_Afta
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@ew-forecast, Sorry SL 2,98 ... as 2,97 looks like the TOP.