Copper has reached its first target at 4.86 where wave 5/ is 38.2% of the distance measured from the beginning of wave 1/ through wave 3/ added to the low of wave 4/. This could be the end of wave 5/ and the start of a new corrective decline. However the momentum indicator (not seen on the chart) suggest that one more rally closer to the 61.8% target near 5.4270 should be expected, before a long-term top finally is in place and a more substantial decline should be expected.
Only a direct break below 4.17 will indicate that wave 5/ and C already has completed and the larger corrective decline is in motion.
Trading recommendation:
We are in the final part of the rally since March 2020 and a larger decline is looming, so stops on longs should be kept tight.
