Look at the below chart of Lead from “The Financial Wave Monthly Update” a monthly research report. Lead has bounced back from 130 levels and rallied towards 170 levels. The commodity is moving in uptrend blue channel which has worked perfectly since 2009.
Figure 10: Lead weekly chart
Recently selling pressure was witnessed in base metals and volatility has increased. This indicates us to look at the long term chart of Lead.
The weekly chart of Lead shows that the up move witnessed from the low of 2009 has formed double correction pattern till now in intermediate wave [X]. As of now wave C of 2nd correction is ongoing and within that prices are in wave 5.
Ongoing wave 5 has been in overlapping fashion with slower momentum that suggests that probably wave 5 is forming an Ending Diagonal pattern. Over short term there is a support near the zone of 155 and if this level remains protected then one more push on upside cannot be ruled out.
Minor degree wave ii of 5 is at 143 levels and for the ongoing trend to remain intact protecting 143 is utmost important. Sharp move below this level will suggest that the trend that started from 2008 lows might be in danger.
In short, Lead is having support near 155 followed by 143 levels. There is a possibility that after the recent correction ongoing there will be some base formation and one push on upside looks probable. Protecting mentioned support levels is most important.
The above research shows in-depth application of Elliot wave along with channel technique. To get insight into Gold, Silver, Crude and Copper you can get access to “The Commodity Waves Short Term Updates”- Subscribe Now