Shanghai copper to retest a support at 36,850 yuan per tonne, as the fall from 39,130 yuan, an hourly chart high on March 5, has not completed yet. The fall followed the completion of an uptrend from the November 24, 2015 low of 33,150 yuan. A Fibonacci retracement on the trend reveals a support at 36,850 yuan, the 38.2 percent level, which has caused the current bounce that may end around 37,720 yuan, the 23.6 percent level.
A break above 37,720 yuan could lead to a gain to 38,260 yuan, the 14.6 percent level, while a break below 36,850 yuan could cause a loss to 36,140 yuan, the 50 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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