Shanghai copper may retest a resistance at 39,710 yuan per tonne, a break above which will lead to a gain to the next resistance at 39,990 yuan. These resistances are identified respectively as the 123.6 percent and the 138.2 percent Fibonacci projection levels of a wave C, the third wave of a three-wave cycle that developed from the July 28 low of 37,440 yuan.
Support will be at 38,990 yuan, the 86.4 percent level, a break below which could signal the completion of the wave C, and the 61.8 percent level at 38,510 yuan will be targeted then. Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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