Chart of the day

Copper is still squeezed in a tight range between 3.580 and 3.820 which is getting more tighter. A break above or below these levels will determine a future medium-term direction. A break below could lead to a downside swing into 3 while a break above 3.820 could open a fifth wave higher and would lead to a test of 4.695.

I see this still as a pullback in the fourth wave before a continuation higher in the fifth wave as long as it is above 3.5000. We need to see a clear confirmed break above 3.820 in the coming days and weeks to support this count higher. Invalidation will come only upon a confirmed break below 3.500.

Long trades could be opened upon a break above 3.850 with a stop loss below 3.600. Short trades should be opened in the case of a confirmed break below 3.500. These are a key resistance/support level so use small sizes and tight stops.