Trade idea 4/1/24: Copper in a three-wave correction?
Copper has completed a five-wave impulse bull run and now appears to be in the corrective phase. IGTV’s Jeremy Naylor looks at the wave structures and suggests the path from where price action is currently.
(AI Video Summary)
Potential copper trading opportunity
In this video, IGTV's Jeremy Naylor talks about a potential trade opportunity involving the price of copper. He's noticed a pattern called an inverted head and shoulders, which usually suggests that the price will go up. However, the recent drop in price indicates that this pattern might not be valid anymore. Despite this, Naylor thinks it's a good time to buy copper at its current price.
Elliott wave pattern observation
To support their idea, he points out a five-wave pattern called the Elliott wave pattern that started on 23 October 2023. He believes that the corrective phase of this pattern is currently happening, and if this is the first wave of the correction, it could be a chance to make a profitable trade. He suggests setting a stop-loss at around 83.90, which is a price that will protect traders in case the market goes against their prediction.
Naylor admits that it's hard to determine the exact bottom of this correction because of the complicated nature of the Elliott wave theory. The market tends to fluctuate a lot and can be very unpredictable. However, he thinks that after this corrective phase, there could be another opportunity to buy copper when another impulse wave occurs.
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