Wednesday, 12 August 2015 10:36
SINGAPORE: Shanghai copper is expected to break support at 38,510 yuan per tonne, and fall further towards the next support at 38,050 yuan, as it has completed a bounce from the Aug. 7 low of 37,310 yuan.
The bounce has been driven by a wave C, the third wave of a three-wave cycle that developed from the July 28 low of 37,440 yuan. A Fibonacci projection analysis reveals this wave has ended around resistance at 39,710 yuan, the 123.6 percent level.
Immediate support will be at 38,510 yuan, the 61.8 percent level, a break below which will lead to a loss to the 38.2 percent level at 38,050 yuan. A further bounce from the current level may be limited to 39,250 yuan, the 100 percent level.