Thursday, 27 August 2015 11:31
SINGAPORE: Shanghai copper is expected to end its current bounce around a resistance at 39,040 yuan before retesting a support at 38,110 yuan per tonne.
The bounce from the Aug. 24 low of 37,530 yuan has completed around 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.
Even though the metal has climbed above 38,750 yuan, the 50 percent retracement, it is unlikely to go above 39,040 yuan, the 61.8 percent level, as a head-and-shoulders has been developing since July 27.
A break above 39,040 yuan could lead to a gain to 39,390 yuan, the 76.4 percent level.
