Copper Futures Bounce from Blue Box Sets Up Further Gains

Copper futures bounced from a defined support zone this week, completing a three-wave corrective pullback that opened a long-side setup, according to Elliott Wave analysts at Elliott Wave Forecast.

The decline from the 6.282 low took the shape of a zig zag, ending in what analysts call the 'blue box' area between 6.5688 and 6.4472. The move aligned with the equal legs of the corrective structure. After reaching that zone, prices reversed and climbed through the 50% Fibonacci retracement of the prior wave, which allowed traders to shift stops to breakeven and take partial profits.

The bounce from the blue box keeps the bullish sequence intact on higher time frames, the analysts said. They now target a move toward 6.9360 and beyond. The setup would be invalidated if copper breaks below the 1.618 Fibonacci extension at 6.4472.

Copper last traded near 6.72, up from the blue box low.