It’s been more than a year. On March 10th, 2014, we published “Copper Measures The Strength of The Economy”. In that forecast we shared our extremely bearish thoughts. While copper was trading at 3.114, the Elliott Wave Principle suggested it might lose another dollar. As the chart below will demonstrate, our price target was near 2.141.
The reason for our bearishness on copper was not the economic outlook. As you may know, all an Elliottician needs is a price chart. In this case, the chart of copper was showing a triangle correction in the position of wave (x). This meant we should prepare for more weakness as wave (y) progresses. Today, almost a year and a half later, we can see the results.
As visible, wave (y) really did extend lower. It seems to have developed as an w-x-y double zig-zag correction, where wave “x” is another triangle. The price of copper fell to 2.322 yesterday. If the above-shown count is correct, we should start preparing for a near-term recovery soon, because the whole (w)-(X)-(y) corrective decline appears to be in its final stages. The bulls could return for a while.
