SINGAPORE: Shanghai copper may break a resistance at 47,960 yuan per tonne and rise more to 48,270 yuan, as indicated by its wave pattern and a Fibonacci retracement analysis.
The resistance is provided by the 38.2 percent Fibonacci retracement on the fall from 49,580 yuan, the close price on the hourly chart on Sept. 17, to 46,950 yuan, the Oct. 13 low.
Three waves will make up the rebound from 46,950 yuan, with the current wave c advancing towards 48,270 yuan, the 50 percent retracement. Only a drop below 47,570 yuan, the 23.6 percent level, could signal the resumption of the downtrend towards 46,950 yuan.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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