Shanghai copper may retest a resistance at 39,710 yuan per tonne, a break above which will lead to a gain to the next resistance at 39,990 yuan. These resistances are identified respectively as the 123.6 percent and the 138.2 percent Fibonacci projection levels of a wave C, the third wave of a three-wave cycle that developed from the July 28 low of 37,440 yuan.
Support will be at 38,990 yuan, the 86.4 percent level, a break below which could signal the completion of the wave C, and the 61.8 percent level at 38,510 yuan will be targeted then. 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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