Markets
Shanghai copper Q4 target 48,900 yuan/T
SINGAPORE : Shanghai copper will fall to 48,900 yuan per tonne in the fourth quarter, with a downside potential at 37,
SINGAPORE: Shanghai copper will fall to 48,900 yuan per tonne in the fourth quarter, with a downside potential at 37,180 yuan.
The contract is riding on a powerful wave (C), the second downward leg of an long-term cycle consisting of a total of three waves, labeled as (A)-(B)-(C), with the wave (A) starting at the 2006 May high of 85,500 yuan.
The current strong bearish momentum will first drive the price down to 48,900 yuan, a presumed wave "B" trough.
However, this sharp plunge very much resembles the fall in 2008, so there is a high chance for the metal to extend its losses to 37,180 yuan, the 61.8 percent Fibonacci projection level of the wave (C).
Copyright Reuters, 2011
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