Gold Tests $4,000. Copper Hits Its ABC Target. What Happens Next?

Investorideas.com (www.investorideas.com), a go-to platform for big investing ideas including mining and precious metals stocks, features a gold and copper market analysis article from Anna Radomska.

What happens when the market reaches a target we’ve been watching for days?

Sometimes the answer is another decline. Sometimes it’s a sharp reversal. And sometimes the most important development is what happens at the next closing price.

This Friday offers two fascinating examples.

Gold has moved through our previously discussed 4080 objective and challenged the psychological 4000 barrier, with two bullish gaps now facing serious technical tests.

Copper has reached its projected C = A objective near 637 and staged a powerful rebound. But its recovery has already encountered an important resistance area.

Both markets are asking the same question: has the move exhausted itself, or is this only the beginning of a larger development?

Let’s examine the evidence.

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Gold (GC.F) – From 4080 to the Battle for 4000

Yesterday’s U.S. session completed the downside objective near 4080 discussed in Free Lab Note posted on Oct.14 and revisited in yesterday’s Free Lab Note. Sellers also tested the upper line of the red falling wedge around 4050, inside the next support area we had already identified at 4036-4060.

Friday opened lower, leaving a bearish gap at 4040-4060, and sellers drove prices to 4001.10. That is a serious test of the psychological 4000 barrier, which also stands near an important rising weekly support line.

One detail makes today’s setup particularly interesting: the new bearish gap almost entirely overlaps the July 30 bullish gap at 4036-4060. Yesterday’s support zone is turning into an obstacle for a recovery. Friday’s high at 4047.57 entered the new bearish gap but did not reach its upper boundary.

A daily close below 4036 would confirm closure of the July bullish gap. A daily close above 4060 would be needed to confirm closure of Friday’s bearish gap. Neither outcome is established yet.

The higher-timeframe question is even bigger. Gold has traded beneath the 4098-4135 weekly bullish gap, but only a weekly close below 4098 confirms its complete closure. RSI and Stochastic on the weekly chart look weak, but 4000 could still provoke a powerful reaction.

Bottom Line: The bearish objectives were reached; now the 4000 defense and two different gap-closing tests will shape the next chapter.

Copper (HG.F) – The ABC Projection Is Hit. What Happens Afterward?

Copper supplied one of this week’s clearest examples of why a projected price level is the start of a new decision, not the end of analysis.

After Thursday’s decline reached the 50% Fibonacci retracement around 641.03, Friday’s low at 637.23 came within 0.23 of the earlier C = A objective near 637, discussed in Premium Lab Note posted on Oct.14 and revisited in Premium Lab Note posted on Oct.21. Buyers then staged a sharp rebound toward 647.58.

But look at Friday’s high: 649.98. The rebound stopped just 0.02 below 650, a critical area near the lower boundary of the weekly rising wedge and the broken short-term consolidation support.

That sets up two very different interpretations. If buyers recover 650 and then the broken daily rising trendline near 656, the C = A objective could mark the end of the correction following the larger advance that began in June. If those barriers reject the rebound and Friday confirms a weekly wedge breakdown, the recent ABC decline might instead be only the first stage of a larger correction.

The next bearish support combination is 625-629. Crucially, 629 is the measured projection of the early-October orange consolidation. It converges with the 61.8% weekly Fibonacci retracement near 629.35, reinforcing the importance of this support area.

A weekly close is required to confirm the wedge break. Until then, neither interpretation is settled.

Bottom Line: The ABC target has been met. Whether that completes the correction depends on the recovery through 650-656 and the weekly wedge verdict.

Friday’s Cheat Sheet – The Weekend Decision Map

Gold (GC.F): Watch 4000 and the overlapping gaps at 4036-4060. A daily close below 4036 would confirm closure of July’s bullish gap, while a weekly close below 4098 would confirm closure of the weekly bullish gap. Bulls need to reclaim 4060 to improve their immediate position.

Copper (HG.F): The C = A objective near 637 has been reached. Bulls must reclaim 650, followed by the broken rising trendline near 656. A confirmed weekly wedge breakdown would favor the next 625-629 support area, where the October consolidation’s downside projection meets weekly Fibonacci support.

The Bigger Picture: Four More Markets, Four Critical Decisions

Gold and copper aren’t the only markets facing consequential Friday closes.

The U.S. dollar briefly reclaimed two bearish gaps and the lower boundary of its former consolidation but couldn’t maintain those gains. Silver has approached its previously identified 5340 downside objective, while a fresh bearish gap complicates any attempt to regain lost support. Platinum is approaching its July low, raising the question of whether buyers can defend a potential double-bottom area. Palladium has reached another downside projection and is testing a particularly important weekly channel boundary.

Final Thought

There is a particular temptation after a week like this to celebrate every precise target and assume the next one must follow. That’s not how disciplined trading works.

The market has delivered several of our projections. The Friday closes will tell us which structures survive. Sometimes the best weekend position is simply a better map and no position at all.

Anna

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