Friday, 28 August 2015 10:49
SINGAPORE: Shanghai copper may seek a support at 39,050 yuan per tonne, before retesting a resistance at 39,540 yuan, as suggested by its wave pattern and a Fibonacci projection analysis.
The metal is riding on a wave c, the third wave of a three-wave cycle that developed from the Aug. 24 low of 37,530 yuan. This wave could travel to 39,990 yuan, its 100 percent Fibonacci projection level.
An inverted head-and-shoulders forming between Aug. 18 and Aug. 27 suggests an extension of this wave towards 40,710 yuan, the 138.2 percent level. The resistance at 39,540 yuan, the 76.4 percent level, has caused a shallow correction, which may be limited to 39,050 yuan, the 50 percent level.
