This is the fifth wave of a five-wave cycle that developed from the Aug. 26 high of $7,108.75. It may travel to $6,530, the Oct. 17 low and the presumed trough of the preceding wave (3).

A Fibonacci retracement analysis on the fall from the Sept. 8 high of $7,052.25 to $6,530 reveals that copper has deeply pierced below a support at $6,729.50, the 38.2 percent level, the pullback towards which seems to be overdone.

The next support will be at $6,653, the 23.6 percent retracement, which is expected to be broken in due course, as well.

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.