Resistance is provided by the 114.6 percent Fibonacci projection level of a downward wave c that has presumably started at the Aug. 25 high of 50,750 yuan. Strengthening resistance is another similar one that was established by the upper channel line of a falling channel.
Copper has been basically falling within this channel over the past few weeks, it may keep on dropping towards the lower channel line, which is about 45,910 yuan, the 161.8 percent level. A more realistic target could be 46,620 yuan, the 138.2 percent level.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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