Related Topics
Metals , Trading
Share This Page         

How (Not) to Track Copper Prices Using U.S.- China Trade Talks

See why using Elliott wave analysis to anticipate copper's near-term trend changes is the better option

by Nico Isaac
Updated: September 06, 2019

On Thursday September 5, copper prices clocked their sharpest two-day rally since November 2018. And, according to mainstream analysts, one main catalyst caused the red metal to turn red hot; namely, an upbeat twist in the ongoing U.S. versus China trade war. Said the Wall Street Journal

"Copper prices rallied Thursday, bringing their two-day climb to 4.5% on hopes that coming trade talks could relieve some pressure on the global economy."

The problem is, when it comes to the soap opera I'm calling As the Trade War Turns, hope changes to fear changes to uncertainty all the time. It's an emotional roller coaster that never stops.

In fact, on September 3, copper prices were weighted to their lowest level in two years. The same trade war climate was then entirely without hope as President Trump slapped a new 15% tariff on a range of Chinese goods and Beijing retaliated with its own tariff boost on $75 billion worth of American products. Stressed one Sept. 3 news source:

"Copper skidded to its lowest since mid-2017 as investors faced fading prospects for a de-escalation in the US-China trade war" (Business Standard)

And yet, copper prices suddenly rallied over the next two days.

The fact is, the best strategy for tracking copper prices is one that doesn't consider the constantly changing trade-war climate at all; but rather, uses the Elliott wave pattern unfolding on copper's price charts.

Here, we go back to mid-July, when copper prices stood just under $3. On July 19, our Metals Pro Service analyst Tom Denham identified a bearish Elliott wave setup on copper's price chart and set the stage for a multi-week decline to new lows. Tom wrote:

"The sharp fall of prices on Friday may be the start of wave y (circled) with potential to new low ...over the next few weeks.

"The outlook is bearish while price holds under the 2.7570-280.00 area."

Copper HG NYMX Sept 2019

From there, copper embarked on a gut-wrenching sell-off to a two-year low on September 3. That day in his intraday Metals Pro Service copper analysis, Tom Denham published this bullish outlook:

"Copper is up sharply from what may be a wave (c) bottom at 2.4820...the sharpness of the rise looks more like a new impulsive development.

"The outlook now is bullish while price holds above 2.5035. "

Copper HG NYMX Dec 2019

Copper's largest two-day advance since November of 2018 followed on cue -- Elliott wave cue, that is.

As the chart below shows, the only "trade talk" our Metals Pro Service analysis found relevant was the high-confidence Elliott wave setups that enabled traders to anticipate a major high and low in copper.

Copper HG NYMX Dec 2019

Right now, our Metals Pro Service reveals where copper -- along with gold, silver, platinum, and more -- could be headed in the days and weeks to come.

Liquid. Fast. Opportunity-Rich.

YOU Can Put One of the World's 10 Most-Traded Markets to Work for You... During the Day

Most people don't realize it, but there's a goldmine in gold's short-term opportunities.

There is always plenty of emotion surrounding gold. As a result, the metal typically sports clean, clear Elliott wave patterns on intraday degree.

You can see those opportunities when you put an experienced wave forecaster in your corner.

In fact, our service will also help you catch short-term moves not only in gold – but also in silver, copper, aluminum, metal ETFs and more.

4 ways EWI's Metals Pro Service lets you trade with more confidence

If it's a major metals market, we'll help you stay on top of it.

1. You Get Timely Intraday and Daily Forecasts

Your Metals Pro Service subscription puts a veteran metals market expert in your corner. His goal is to make sure that day-by-day, hour-by-hour, you see the very latest Elliott wave picture. You get intensive intraday coverage to help you catch near-term opportunities and daily forecasts that let you get in front of longer-term waves.

Precious Metals: gold, silver, platinum, palladium, metals stocks and ETFs.
Base Metals: LME Copper, Comex Copper, Aluminum, LME Lead, LME Nickel, LME Tin, LME Zinc.

2. Daily Videos Prepare You for Next Day’s Action

Every day, editor Tom Denham records a new video that breaks down the previous day’s price action and gives you a detailed look at what’s next. It’s a lesson in real-time Elliott wave application from a master analyst. You see and hear Tom explain every nuance, so that you understand how the price moves fit into the wave picture – and, most importantly, how it gets you ready for ALL probabilities ahead.

3. You Get Essential Weekly Perspective

Context is key. Your Metals Pro Service subscription gives you big-picture analysis to help you ride major trends – trends that can last years. This essential perspective puts the near-term moves into context. Together, you get a comprehensive Elliott wave picture for the metals markets at every degree of trend.

4. You Become Part of an Exclusive Community of Savvy Elliott Wave Traders

We're on your side and working for you. If you have a question about the Wave Principle or our analysis, just send us an email. A team member will get back to you. If it makes sense for the answer to be shared with your Pro Service peers, we'll do so (confidentially, of course). If you're having a hard time grasping an Elliott wave concept, our Educational Consultant will find the best resource for you and send it along. We know that we're successful when you are successful. We do everything in our power to make sure that happens.


Start Your Subscription Now

Personalize your Metals Pro Service package to get the coverage you need.