Shanghai copper drop to 38,510 yuan

Shanghai copper is expected to drop to 38,510 yuan per tonne, as it is riding on a downtrend towards the August 7 low of 37,310 yuan. The trend is considered as a continuation of a bigger downtrend preceding the rebound from the July 28 low of 37,440 yuan. A Fibonacci projection analysis reveals an immediate support at 38,790 yuan, the 76.4 percent level, which could be broken on Tuesday.
The next support will be at 38,510 yuan, the 61.8 percent level, a break below which will lead to a further loss to the 38.2 percent level at 38,050 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.