SINGAPORE: Shanghai copper third month may drop to 46,620 yuan per tonne as it may have completed a rebound around resistance at 47,320 yuan.
Resistance is provided by the 114.6 percent Fibonacci projection level of a downward wave c that has presumably started at the Aug. 25 high of 50,750 yuan. Strengthening resistance is another similar one that was established by the upper channel line of a falling channel.
Copper has been basically falling within this channel over the past few weeks, it may keep on dropping towards the lower channel line, which is about 45,910 yuan, the 161.8 percent level. A more realistic target could be 46,620 yuan, the 138.2 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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