SINGAPORE: LME copper is expected to test a support at $6,643 per tonne, as it failed to break a resistance at $6,712.
The resistance is identified as the 61.8 percent Fibonacci retracement on the fall from the Oct. 14 high of $6,825 to the Oct. 17 low of $6,530. Copper has failed twice to overcome this barrier, signalling a completion of the rebound from $6,530.
The metal has broken a support at $6,678, the 50 percent level, the next support will be at $6,643, the 38.2 percent level. A break above $6,712 will lead to a further gain to $6,755, 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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