The rise from the Oct. 17 low of $6,530 has been presumed to be driven by a wave c, the third wave of a three-wave cycle that developed from the March 19 low of $6,321.
A Fibonacci projection analysis reveals the metal has cleared a resistance at $6,740, the 23.6 percent level and could be advancing towards the 38.2 percent level at $6,870.
A Fibonacci retracement analysis on the fall from the July 25 high of $7,198.25 to $6,530 marks an immediate resistance at $6,785, the 38.2 percent level, which has triggered a pullback towards $6,740.
Strategically, the target at $6,870 will be confirmed when copper climbs above $6,785.
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.