Wednesday, March 12, 2014

Copper Collapse in Progress

Copper often leads other markets. That's why the red metal is called Dr. Copper. See our previous forecast for Copper on this blog posted 21st of Februarry 2014 and 8th of October 2013.

Copper is following our forecast to a tee. Here is an updated weekly chart of copper with the Elliott Wave structure:



































Source Elliott Wave Technician

There is no change in our earlier forecast published previously on this blog and repeated under

Copper is in the early stages of a decline in wave "C" marked on the above chart in blue color. Wave "1" of "C" down marked in black color is complete. A corrective rally in wave "2" of "C", also in black color, is complete. Wave "3" down in copper is in progress. Notice that the Bolling Band is expanding and the copper price is tagging the band confirming the down trend.

A possible target of coppers decline is the USD 2 - 2.25 area. Good support comes in at around USD 2.15 at the rising support line connecting the 2002 and 2009 bottoms (not visible on the above chart). This support line will be around USD 2.25 at the end of 2014 and around 2.35 at the end of 2016, but expect a "throw over" of the support.area to make our downside target come true. However, the hight of the "B" wave triangle indicate a target of around USD 2.5.

How the above fits into the larger Elliott Wave structure of copper is excluded in the above chart.

Geir Solem

Elliott Wave Technician
Copyright (C) all rights reserved