SINGAPORE: Shanghai copper third-month may drop to 47,050 yuan per tonne, as it faces a resistance at 47,520 yuan.
The resistance is provided by the 23.6 percent Fibonacci retracement on the fall from the July 4 high of 51,580 yuan to the Oct. 17 low of 46,270 yuan. This barrier caused a drop towards the 14.6 percent level at 47,050 yuan on Oct. 27 and may trigger another one.
A rise to 47,640 yuan may signal a break above the 47,520 yuan and the 38.2 percent retracement at 48,300 yuan will be targeted.
** 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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