The metal could have just completed a wave B at the March 21 high of $6,555.50. It is the second wave of a big correction from the June 7, 2018 high of $7,348.
The wave B adopted an irregular flat pattern, which consists of three smaller waves. The third wave labelled c is roughly 1.382 times the length of the first wave labelled a, as revealed by a projection analysis.
Such a relation, along with a small double-top forming around $6,555.50, is good enough to confirm a completion of the wave B.
With the third wave labelled C on the way, the metal could eventually drop to $5,475, the 61.8 percent retracement of the uptrend from the Jan. 15, 2016 low of $4,318 to $7,348.
A realistic target could be $5,833, which will be confirmed when copper breaks the nearest support at $6,191.
The break is highly likely as the double-top points at a target around $6,150. Resistance is at $6,436, a break above which could lead to a gain to $6,583. Please be informed that the report will be published once a week on Monday.
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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. No information in this analysis should be considered as being business, financial or legal advice.
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