Safehaven | Elliott Wave on Copper | Printer Friendly Version

December 05, 2005

Elliott Wave on Copper
by Dan Stinson

Short Term Forecast

Copper is at all time highs, but the question many are asking is, where does it go from here. The first long term chart illustrates that another parabolic advance is taking place for copper. Parabolic advances are powerful moves that at some point can no longer be supported by gravity. What I mean by this, is when they top out, the the decline is (almost) always as sharp as the advance. The price action can't be sustained for these type of advances and the reversal can be devastating if not prepared. Our charts from Dec 2004 and Dec 2005 have been combined together to add insight on the long term trend of copper. Our 2004 chart indicates that we were expecting a move to at least the first possible top trendline, which has been attained and then some. We can see from the long term chart, that a bull market has been in play since Oct 2001 but this parabolic move appears that it is getting close to completion.

When a reversal for copper is confirmed by out Elliott Wave count, the implications for the economy will also not be positive. It is not a coincidence that the markets and copper have rallied together from the lows in 2001-2002.

The 3rd chart indicates that copper is either in wave (5) of wave (V) up or that it is still wave (3) up. We would see a pullback in wave (4) before further upside in wave (5) for the second possibility. These possibilities will be examined on the next pullback.

We will be looking for corrective or impulsive action on the next pullback to confirm which count is in play. A break below the top trendline on the next pullback will be bearish.

These charts are only a guide so that you can follow the action and watch for the expected topping action. The action could play out exactly as illustrated or it may need adjustments as we follow it through.

If you are interested in viewing these updated charts and other detailed charts with targets on a daily basis, please see the registration details below.

Elliott Wave Chart Site - IntraDay Market Updates on the DOW, Nasdaq, S&P500, Gold, Silver, HUI and the USD.
To learn more on the status of Gold, Silver, HUI and the USD, please visit the link below for registration details.
The commentary and forecasts are updated daily, including intraday commentary and chart updates. Fibonacci pivot dates and cycle analysis are also utilized to forecast reversal dates.
The indices covered include the NASDAQ, DOW, S&P 500, Nikkei, and DOW Transports. Commodity charts include the CRB Index, Copper, Crude, Sugar, Wheat, Corn, Soyabeans, Platinum, Palladium, Gold, Silver, HUI and the XAU (Gold and Silver index). Additional Elliott Wave charts cover the US Dollar (USD),(CAD), 10 Year Treasury Note Yield (TNX), Nortel, Ballard Power, North American Palladium, Placer Dome, Gold Corp, Barrick Gold, High River Gold, Pan American Silver, Couer D Alene Mines (CDE), Bema Gold (BGO.TO), Durban Roodeport Deep (DROOY), Newmont Mining (NEM) and Agnico Eagle Mines (AEM). Registration Details

Happy Trading!!!

Dan Stinson
Elliott Wave Chart Site
ewavecharts.com