Chart of the day

Where do we stand fundamentally?

Copper prices have recently experienced a decline, falling below $4.20 per pound, marking a third consecutive session of decreases. This downturn follows China's reaffirmation of its recent policy shifts without providing details on potential stimulus measures. At the country's annual economic planning conference, officials outlined plans for proactive fiscal policy and moderately looser monetary policy, including a larger deficit, the issuance of more ultra-long bonds, and potential interest rate cuts next year.

Copper is reaching a strong support level 4.20, a rising wedge support, and a previously broken downtrend line retest. This is the possible end of the Elliott upside long-term fourt wave pullback. My KNOWPO trading system is indicating a good reversal point here, so I am expecting a reversal upside here (outlined blue waves representing the major cycle).

A break below 4.20 will invalidate the upside extension and will lead to an extension lower in the fourth wave to a major support 3.85.

_{You can take a long trade entry with a stop loss below 4.15 to target 4.52 and higher.}