An explanation on Copper’s quarterly-chart, since 1972 :
” The essential underlying tendency of the wave principle is that action in the same direction as the one larger trend develops in five waves, while reaction against the one larger trend develops in three waves, at all degrees of trend.”
In accordance with the concept of the Elliott Wave Principle :
On the quarterly-chart frame, Copper completed an impulsive five-wave sequence up as a possible third wave of the cycle degree, in spring 2008. Since then, Copper is likely to correct in a three-waves sequence(or a variation) as a possible fourth-wave.
“Quite often, when a large correction begins with a simple structure as first wave, the following waves will stretch out into a more intricately subdivided corrective form to achieve a type of alternation.”
Accordingly, for the subsequents of the overall corrective sequence; it would suggest that, the sharp simple structure fall could be labeled as the wave A(circled), the simple three-waves rise could be wave (A) of an ongoing wave B(circled), and then an impulsive wave C(circled) decline which would be yet more complex is likely ahead.
How far down can the ongoing Copper’s bear market be expected to go?
” The primary guideline is that corrections, especially when they themselves are fourth waves, tend to register their maximum retracement within the span of travel of the previous fourth wave of one lesser degree, most commonly near the level of its terminus.”
Based on the guideline of the Elliott Wave Principle, Copper tend to develop its following wave sequences on the down trend persistently, and it is expected ultimately retrace to the span of travel area of the preceding fourth wave of one lesser degree, around the 86.60 level.
The equilibrium area on the previous fourth-wave is a common target after five-wave rallies, so Copper on the expected alternate counts for its corrective sequence, may eventually work its way down to expected target.