Shanghai copper targets 37,780 yuan

Shanghai copper is poised to break a resistance at 37,370 yuan per tonne and rise further towards the next resistance at 37,780 yuan. These resistances are identified respectively as the 50 percent and the 61.8 percent Fibonacci retracements on the fall from 39,130 yuan, the hourly chart high touched on March 7, to the April 12 low of 35,600 yuan.
A falling channel suggests a target around 37,780 yuan. Following its stabilisation around 36,950 yuan, the 38.2 percent level, copper is ready to rise again. A drop below 36,780 yuan may be extended to 36,430 yuan, the 23.6 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.