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Copper May Rise to $7,875 This Week on `Elliott Wave:' Technical Analysis

Copper Gains for Fourth Day as U.S. Jobs Data Eases Global Growth Concern

Sep 6 (Bloomberg)--
The prices of copper rose to a high this year of $8,043.75 a ton on April 12.
Copper may rise to $7,875 a metric ton this week after prices formed an Elliott Wave, a chart pattern signaling the potential for even more gains, according to technical analysis by Sucden Financial Ltd.
The attached chart shows the metal rose above $7,562 a ton, a 76 percent retracement from April 12 to June 7, one of the levels singled out in so-called Fibonacci analysis.
The price increase may have stalled at this level if it wasn&rsquo;t for the &ldquo;five-wave-higher&rdquo; pattern, which developed from June 7, according to Brenda Sullivan, a technical analyst at Sucden in London. &ldquo;Part of the Elliott Wave bullish scenario is the potential for a target of $7,875 a ton,&rdquo; she said. &ldquo;This target area could be reached&rdquo; this week, she said.
Copper for delivery in three months traded at $7,652 a ton at 5:01 p.m. on the London Metal Exchange on Sept. 3, bringing the gain for the week to 2.6 percent. The prices of the metal rose to a high this year of $8,043.75 a ton on April 12.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low. Elliott Wave Theory, created by U.S. market analyst Ralph Elliott in 1938, attempts to predict prices by dividing past movements into sections, or waves, and calculating changes in value.
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