Related Topics
Metals , Investing , Trading

Copper and DB Base Metals Fund (DBB): “Bull market is already underway”

Let’s review a contracting triangle chart pattern

by Bob Stokes
Updated: December 14, 2021

Classic Elliott wave chart formations are highly useful in forecasting financial markets.

One of those classic patterns is known as a "contracting triangle."

As Frost & Prechter's Elliott Wave Principle: Key to Market Behavior notes:

The triangle pattern contains five overlapping waves that subdivide 3-3-3-3-3 and are labeled A-B-C-D-E. A triangle is delineated by connecting the termination points of waves A and C, and B and D.

Here's an idealized contracting triangle in a bull market:


As you can see, a significant price advance is anticipated upon completion of wave E.

With that in mind, consider this commentary from our August 2020 Global Market Perspective:

The Economist commented on July 25 [2020] that copper's "traditional engine--strong global economic growth--is sputtering. Continued infections in America or a resurgence of the virus elsewhere could further depress demand for appliances, cars and other copper-dependent goods."

From our perspective, though, the completed contracting triangle pattern in copper and the metals complex indicates that a massive bull market is already underway. [emphasis added]

In other words, Mark Galasiewski, one of Elliott Wave International's global analysts, anticipated the prices of base metals to rise based on a classic Elliott wave pattern -- even though the "fundamentals" were determined by some observers to be bearish.

Indeed, take a look at this December 2021 chart, which shows the juncture at which Mark's bullish forecast was made and the subsequent price action:


Since that bullish forecast was made, the Invesco DB Base Metals Fund has increased in value by 42%, as of this writing on Dec. 13.

You can find many more forecasts based on Elliott wave chart patterns in our monthly Global Market Perspective -- which covers 50+ financial markets worldwide.

Follow the link below to get the timely insights that will help you to properly position your portfolio.

You Are the World’s Most Important Living Investor...

...That is, as far as your portfolio is concerned.

Much of your financial future depends on the decisions you make now.

It's the old conundrum: You want your portfolio to grow at more than a snail's pace -- on the other hand, you don't want to lose money.

Well, EWI's 25-plus analysts are always on the lookout for financial opportunities they can share with subscribers. Yet -- and this is a big "yet" -- our analysts are highly aware of the importance of financial safety.

Get timely financial insights from our team of global Elliott wave experts as you read our professional-grade Global Market Perspective.

Get started by following the link below.

Global Market Perspective


Gives you clear and actionable analysis and forecasts for the world’s major financial markets.

Get insights for the U.S., European and Asian-Pacific main stock indexes, precious metals, forex pairs, cryptos (including Bitcoin), global interest rates, energy markets, cultural trends and more.

Learn More


Forget the Fed -- Watch the Waves

The Federal Reserve, and to a lesser degree the European Central Bank, have dominated the conversation about interest rates lately. But watch our Interest Rates Pro Service analyst Ivo Zhelev apply textbook Elliott waves to forecast the price of the UK's Long Gilt -- and, by extension, UK interest rates -- without a single glance at central bank statements.

Why a U.S. Recession May Foil Economists’ Expectations

A recent survey reveals positive expectations for the economy by a group of "professional forecasters." Learn why you may not want to bet the farm on that expectation. This chart compares leading economic indicators around the time of past recessions with what's going on now.

Gold Mining Stocks Lead Gold Lower: What’s “Fundamentals” Got to Do with It?

In mid-April, gold mining stocks led by VANECK GOLD MINERS ETF turned down from one-year highs to 3-month lows in May. Gold followed, reversing from all-time highs on May 4 to multi-month lows on May 25. We don't need another "fundamental" explanation for why.