Copper Weekly Chart Review: Is it Ready For A Correction?

Copper sure is having a great run, but all great runs must come to an end sooner or later. In this case copper can still push higher, but I think a correction is due soon. The wave pattern looks like a great set of 5 waves up, but it just about looks too perfect which is very rare.  If a wave 4 correction is coming then the 2.50 price level could give the copper price support. 

Last weeks commercial traders were still in a net short position and growing. This ratio is about 1.57:1 while the speculators have the opposite positions. They are chasing the bull market, but could find themselves in a short term bull trap.  Commercials have already been net short for some time, and don’t consider them as speculators but more like hedgers. 

I think early  2011 could be the Cycle degree wave 3 position and we are in the “B” wave rally of a Primary degree bear market rally. What if copper still soars to new record highs?  Then this copper rally could turn into a “C” wave bull market, but for now we have to take one wave at a time as copper is a very choppy and wild market.  

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