Tuesday, 25 August 2015 10:49
SINGAPORE: Shanghai copper may edge up to a resistance at 39,030 yuan per tonne, as it has pierced above a resistance at 38,750 yuan.
The resistance is at the 50 percent Fibonacci retracement on the fall from the Aug. 13 high of 39,970 yuan to the Aug. 24 low of 37,530 yuan. The next resistance will be at 39,030 yuan, the 61.8 percent level, a break above which could lead to a further gain to 39,390 yuan, the 76.4 percent level.
The chart pattern from July 27 looks like a head-and-shoulders, with the right shoulder under development. A break below 38,750 yuan could cause a loss to the 38.2 percent level at 38,460 yuan.
