LME copper biased to break resistance at $6,733

14 Oct, 2014

SINGAPORE: LME copper is biased to break resistance at $6,733 per tonne as a small double-bottom could have formed around the Oct. 2 low of $6,604.

The neckline of the pattern is at $6,733, a resistance identified as the 76.4 percent Fibonacci projection level of downward wave (c) that started at the Sept. 16 high of $6,992.

A break above resistance will confirm the double-bottom, which points a target at $6,863, the 38.2 percent level. A more realistic target, however, could be $6,783, the 61.8 percent level.

A drop to $6,680 may be extended towards $6,604.

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.

Copyright Reuters, 2014

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