Copper … interesting

it’s all about the data folks … in this case we have a monthly continuous contract of Copper Futures. the PATTERN into the low back in 1990-2000 (yes it took 10 years to complete .. read that again – 10 years) is hard to understand w/out anymore data to the left of it’s beginning so it’s hard to figure out if the high in 2010 was a big 3 or big 5.

thus, I’m going to outline two scenarios ..one bearish one bullish.

BEARISH: replace the big bright orange question mark w/ a bigger 5. IF that is the case THEN the most recent high was completing a B wave and we have started a C wave down … C waves are freight trains of beauty and a wonder to behold .. leave nothing in their wake. stand by …

now, hold the phone, what if the big bright orange question mark is/was a 3? then, the BULLISH scenario is we just finished wave 3, are correcting wave 4 and copper is a BUY into new highs … it’s still working it’s way thru the corrective PATTERN that will appear so it’s hard to make a projection but we should NOT go below (1) as that will violate a rule …

so, for now, take note of the blue arrows .. the all time high was, yup, an AB=CD staring from May 1999. It smacked right into that …

kind of in no mans land from a count perspective due to data but expect the two red horizontal lines to act as support due to the polarity principle …

Happy Fathers Day …

also, note EEM .. smacked into a nice target zone in/around 58 and the second chart shows the daily sell signal on EEM.

minor EEM sell pattern on the daily …

last, note the synchronicization between copper and emerging markets … pretty nice correlation.

last, note the FXI (china) has NOT made new highs while Copper and EEM have .. below you can see that high/low inflection points are nicely timed by the Chinese ETF …

so, for now, expect copper weakness for the next couple weeks then we can figure out where we might be from a count. if anyone has really long term copper data please let me know.

Bart

EEM – now a SELL pattern complete

last post on the EEM was a nice BUY PATTERN: https://bartscharts.com/2019/08/06/eem-big-buy-pattern/ now, we have a larger (purple shaded regions) SELL PATTERN that hit at the beginning of last week. for now, the EEM should stay below the 46.50 area ….

for those interested in PATTERNS I’m using the colors to show how a complete pattern presents itself via connecting the swings. in this case the ‘first’ pattern was a BUY pattern shown by the ‘light blue’ triangles and then the market rallied from that area into the shaded purple sell pattern area …

EEM – big BUY pattern

note, we finished a very nice BUY pattern on the EEM yesterday. it was nice in both PRICE and TIME.

it ‘held’ in/around 38’s but is plowing into a pretty big daily gap. additionally, the THRUST into this level was pretty significant. any further weakness below the 38’s is significant for EEM.

also, note .841 level is based on the equal octave scale of music. 1/.841 = 1.1892 or D#.

watch this one closely …