SINGAPORE: LME copper may retest resistance at $6,823 per tonne, a break above which will lead to a further gain to $6,863.
A double-bottom that formed around the Oct. 2 low of $6,604 has been confirmed, pointing to a target at $6,863, the 38.2 percent Fibonacci projection level of downward wave (c) that started at the Sept. 16 high of $6,992.
Resistance at the 50 percent level of $6,823 has caused a moderate correction, which may end around support at $6,783, the 61.8 percent level. A further drop to $6,768 could extend to $6,733, the 76.4 percent level.
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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