US and China trade war: There has been lot of news around this but Copper is about to give a positive breakout with Time cycle lows nearing.
Copper post making a high near 468 in the month of February 2019 has been trading sideways since then. A breakout from this long consolidation is required for a trending move which would most probably emerge on the upside.
The below chart is from Monthly research report – The Financial Waves monthly update.”
MCX Copper weekly chart:
Elliott wave perspective: The weekly chart shows that primary degree wave 5 looks ongoing within which intermediate degree wave iv is on-going. Primary degree wave 5 looks to be forming an Ending Diagonal pattern as wave iv has entered price range of wave i.
For internal counts clarification we have shown the daily chart in our actual monthly research report…
Ending Diagonal – is a 5 legged impulse pattern with wave iv overlap with wave i. Also unlike normal impulse each leg of this pattern is corrective. It normally looks like a wedge shape with reducing momentum. However, one should trade in direction of the trend unless there is faster retracement above the ii-iv trendline which provides the 1st stage of confirmation
Fibonacci retracement- Fibonacci retracement is a method of technical analysis for determining support and resistance levels. On weekly chart, prices look to have retraced nearly 50% of the rise since wave 5 began and we can see it has been taking strong support near this level.
…. weeks Cycle: The … Weeks’ Time cycles have been working extremely well and have helped in capturing major lows and highs. Prices are now nearing the cycle and it would be essential to see if the same works out this time too. We are keeping a close tab on the prices.
Decisive close above …. levels will further confirm positive breakout in this commodity despite the trade war issue ongoing between US and China. Interesting, Isn’t it!
It is best to trade based on these objective methods and not based on some news or tweets by Trump as they will not result into any profitable trades.
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