Copper Technical Analysis
Copper technical analysis shows that LME copper price is depreciating in a big bearish trend since 2011 having lost its half by now.
Monthly chart shows us a prolonged A wave down being developed for 6 years already. It has a strong support from its older time frame (4-Months chart).
After its low 4267.06 in January the market tries to perform a bullish correction on the weekly chart. This correction is comprised of 3 subwaves on a smaller chart – 2-Days.
2-Day waves are plotted with the violet lines and now we are developing the impulse C wave on the 2-Day chart as a part of 3-wave or 5-wave structure. We may now either continue up within the current C wave or make a correction 4th wave and then jump into a 5th bullish impulse wave.
Wave structure on the 4-Hour chart is a subwave enclosure inside the C wave of the 2-Day Chart. The waves of the 4-Hour time frame are drawn with aqua lines. From the chart we may see that the C bullish momentum wave has definitely finished and the price may either be developing the 4th correction wave down or be going to form the new bearish A wave down. If we consider the current move on the 4-Hour chart, it consists of subwaves of a smaller time frame. Let us get down to an 1-Hour Chart.
The current wave down that is clearly seen on the 4-Hour chart consists of the 3 waves of 1-Hour time frame marked with lime lines. We may see that we had the A wave down then followed by the complex B correction and now the bearish wave C is in progress. For the time being we do not have any signs that the bulls are ready to take revenge.