Elliott Wave View: Copper Starts a New Leg Higher

Short Term Elliott Wave view in Copper suggests that the decline to 2.938 on 3.26.2018 ended Minor wave IV. The metal started a new leg higher from there in Minor wave V. Subdivision of Minor wave V is unfolding as an impulse Elliott Wave structure. An Impulse Elliott Wave structure is a 5 waves structure where wave 1, 3, and 5 subdivision are also internally in 5 waves (impulsive). In the case of Copper, up from 2.938, Minutte wave (i) ended at 3.024, Minutte wave (ii) ended at 2.968, Minutte wave (iii) ended at 3.072, and Minutte wave (iv) ended at 3.037.

Near term focus is on 3.081 – 3.095 to complete Minutte wave (v). This next leg higher in Minutte wave (v) should end Minute wave ((i)) of a larger degree. Copper should then pullback in Minute wave ((ii)) in 3, 7, or 11 swing to correct cycle from 3/26/2018 low before the rally resumes, provided pivot at 2.938 low stays intact. We don’t like selling the proposed pullback and expect buyers to appear while Minute wave ((ii)) dips stay above 2.938 low.