LME Copper Technical Analysis: No Recovery
In our previous technical analysis of copper at the London Metal Exchange we expected recovery on 8-hour chart.
LME Copper on a 2-day chart still shows a bullish 3-wave structure making a C wave up at the moment. However, the bearish correction is already seen on this time frame: the main line of the Awesome Oscillator has crossed its balance line but has not yet touched the zero line. What does it mean? it means that this correction has a subwave level for a 2-day chart and needs a detailed study on smaller charts.
You may remember that previously we ranked this move down as the B correction wave of the 8-hour time frame. However, its power exceeded a scale of the 8-hour chart and made the Awesome Oscillator of the older 32-hour time frame (AOx4) to cross the zero line thus prohibiting any bullish pattern on the 8-hour time frame this time. Zero line cross shows that we are having a new bearish A within a bigger trend of the old 32-hour time frame.
The inside structure of this A wave down could be seen on smaller time frames. If we take a 4-hour chart, we will see a 3-wave bearish structure plotted with aqua lines inside the bigger brown wave. This structure is protected by the blue dashed slope channel above. Breaking or touching the slope channel will be one of the signals of possible reversal. The time and smaller time frames will show.