Elliott wave on Copper!

On 23^rd April we published article on Copper is due for a trend!  And mentioned that prices are trading at matured stage and the uptrend is due.

Prices moved in line with our expectations after completing time correction. Let’s see what we had published in 23^rd April, 2014

MCX Copper 60 mins chart (June Contarct) on 23^rd April, 2014.

Waves Analysis:

For MCX Copper, in tandem with other base metals prices moved higher and managed to close near day’s high level. Up move was very well backed by depreciation in INR currency pair against the US Dollar. Looking at the Comex Copper structure there is very high likelihood that prices will move higher and weakness in INR will aid positivity in the up move.

As shown in 60 mins chart, after ending wave iii near 395 level prices were moving in sideways and it was more as time correction which ended near 415 near in the form of wave iv. After that we witnessed sharp fall towards 400 level and looking at the recent up move there is very high likelihood that prices have ended wave v near 400 levels in the form of truncation. However, we do not have any price confirmation so far. Any decisive break of 415 followed by close above the same will indicate that wave v has ended near 400 levels and we can expect deeper retracementof prior down move. On downside 408 level will act as immediate support.

Looking at Comex Copper structure and overall weakness in INR there is very high probability that prices will break the 415 levels. Positional trader should wait for positive prices confirmation.

In short, on downside 408 level will act as important support and we can expect move towards 415 in coming trading session and any move above the same will provide positive price confirmation and we can expect some trending move in coming trading sessions!

MCX Copper 60 mins chart (June Contarct)

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