The “golden” section, i.e. the irrational number 1.618…, or the inverse of 1.618 (0.618) is a very frequent proportion in nature, anatomy, architecture and is recognized as an ideal of beauty and harmony (examples are the Parthenon of Athens, the UN Palace in New York or the height of an individual and the distance of his navel from the ground). In fact, the ratios of Leonardo Pisano (known as Fibonacci) have great value in the financial sphere. Even the succession that bears his name will remain indissolubly linked to the golden section.
What are the fundamental levels of Fibonacci:
We apply the Fibonacci time extension on the monthly chart of copper listed on the CME.
It can be seen that by plotting these extensions from 2002 to 2016, the levels 0.38-0.50-0.62 correspond to minimum price levels (over a 14-year-long cycle). Tracing the same levels from 2016 to 2030 identifies potential lows 05/2022, 01/2023 and 08/2024 (the latter level coincides with multiple Fibonacci extensions).
Going into more detail, analyzing the cycles on copper quoted at the LME, the primary cycle of 14 years includes an intermediate cycle of 8 years and one of 4 years. Since 2016 we are still within the primary cycle but in the final phase of the 4-year cycle (ends 2020/2021). Possible recovery of the 8-year cycle that will form a new minimum potential in 2024. Subsequently, with the closure of all the time cycles (primary – intermediate – short) the descent could be of greater proportions.