This year’s Copper (HG) futures advance was a modest 2.86% (YTD) until this Monday. By comparison, Silver (SI) has appreciated 7.90% (YTD). Since the first quarter of 2019, HG made a rally from $2.5430. The red metal likely will make a limited decline before developing an upside movement.
The big picture
The Copper weekly chart shows a bullish five-wave sequence that started in early 2016 from 1.9365. The current formation looks like a descending wedge in progress. The volume has moved below its 50 weeks moving average, which suggests that we still are in a corrective sequence, and it’s likely a new decline.
Our long-term overview from Copper is, in a first step, the completion of a second bearish leg in the descending wedge in progress. This foreseen move is a marginal drop, which could reach the range between $2.559 and 2.4915. Once this movement is completed, we will define the potential bullish targets according to the upward direction observed from the weekly chart.
Remember that the price is not forced to move as our outlook proposes. The charts released corresponds to an educational application of the Elliott Wave Theory. Comments issued don’t represent an investment recommendation. Leveraged products are complex financial instruments and are not recommended for a certain type of traders. Losses can exceed deposits.