Elliott Wave Analysis: Metals Turning Bearish!

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Metals are approaching resistance areas, so be aware of a fifth wave ending soon on some of them; Gold and platinum, while copper may have already found a top, so its current recovery can be a minor corrective pause. 

We are observing copper in a new, bearish cycle, down from 2.7600 level where a previous a-b-c correction found resistance. In Elliott wave theory we know that once an a-b-c correction fully develops, that is when a new, potential, five-wave move into the direction of the bigger trend may follow. 

Specifically, we see copper now unfolding a minor (a)-(b)-(c) rise within a higher degree wave ii, with possible resistance, and a bearish reversal zone near the 2.700/2.720 region. A drop in impulsive fashion, below the low would confirm more bearish activity. 

Platinum, on the other hand, can still be trading in a bigger, three-wave a-b-c recovery with a potential target for sub-wave (v) of c being seen around the 860.0 regions. We are tracking a potential break-out of a former corrective sub-wave (iv) of c, that points towards higher levels. 

Gold is also approaching a possible end for a wave five as well, so be aware of a bearish continuation on all the metals. 

A drop in impulsive fashion would confirm a top/resistance in place, and more weakness.

Copper, 4h, and 1h

Platinum, 1h 

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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