SINGAPORE: Shanghai copper third month may break a support at 47,330 yuan per tonne and fall more to the next support at 46,920 yuan.
These two supports are provided by the 23.6 percent and the 14.6 percent Fibonacci retracements on the fall from the Aug. 25 high of 50,750 yuan to the Oct. 17 low of 46,270 yuan.
Wave pattern indicates the progress of a downward wave 5, towards 46,270 yuan. Strategically, the target at 46,920 yuan will only be targeted when copper drops below 47,330 yuan.
** 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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