Shanghai copper is expected to fall to 37,440 yuan per tonne as it has broken a support at 38,200 yuan. The support was at the 14.6 percent Fibonacci retracement on the fall from the June 29 high of 42,620 yuan to the July 28 low of 37,440 yuan. This is the last barrier towards 37,440 yuan. A sudden surge to 38,270 yuan could signal the break below 38,200 yuan was false, and a rebound target will be established at 38,660 yuan, the 23.6 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.