Wednesday, 26 August 2015 10:53
SINGAPORE: Shanghai copper is expected to drop to 38,750 yuan per tonne, as it has completed a bounce from the Aug. 24 low of 37,530 yuan.
The bounce has adopted a three-wave mode, with the third wave having failed to break a resistance at 39,390 yuan, the 76.4 percent Fibonacci retracement on the fall from the Aug. 13 high of 39,970 yuan to 37,530 yuan.
The drop caused by the resistance has extended below a support at 39,030 yuan, the 61.8 percent level, and chances are it may extend furher to 38,750 yuan, or to 38,460 yuan, the 38.2 percent level.
A break above 39,390 yuan could lead to a gain to 39,960 yuan.
