Shanghai copper may break a resistance at 37,820 yuan per tonne and rise towards the next resistance at 38,320 yuan, as suggested by a Fibonacci projection analysis. The analysis is based on the uptrend from the April 12 low of 35,600 yuan to the April 25 high of 39,040 yuan. Even though it is not very clear if the gain from the April 28 low of 37,010 yuan is an extension of the uptrend, the Fibonacci projection analysis does reveal they are closely related.
Support is at 37,510 yuan, the 14.6 percent level, a break below which could cause a loss into a range of 37,010-37,250 yuan. Use EIKON news "Alerts" to be notified of this report and get it sent to your email box when it is published. 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.