Elliott Wave Analysis: Metals Turning Bearish!

Intermediate

Metals are approaching resistance areas, so be aware of a fifth wave ending soon on some of them; Gold and platinum, while copper may have already found a top, so its current recovery can be a minor corrective pause.

We are observing copper in a new, bearish cycle, down from 2.7600 level where a previous a-b-c correction found resistance. In Elliott wave theory we know that once an a-b-c correction fully develops, that is when a new, potential, five-wave move into the direction of the bigger trend may follow.

Specifically we see copper now unfolding a minor (a)-(b)-(c) rise within a higher degree wave ii, with possible resistance, and a bearish reversal zone near the 2.700/2.720 region. A drop in impulsive fashion, below the low would confirm more bearish activity.

Platinum on the other hand can still be trading in a bigger, three-wave a-b-c recovery with a potential target for sub-wave (v) of c being seen around the 860.0 region. We are tracking a potential break-out of a former corrective sub-wave (iv) of c, that points towards higher levels.

Gold is also approaching a possible end for a wave five as well, so be aware of a bearish continuation on all the metals.

A drop in impulsive fashion would confirm a top/resistance in place, and more weakness.

Copper, 4h and 1h

Copper 4hr and 1hr Chart

Platinum, 1h

Platinum Futures

@ewforecast

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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