Tuesday, 08 September 2015 11:30
SINGAPORE: Shanghai copper faces a resistance at 39,560 yuan per tonne, a break above which could lead to a gain to the next resistance at 40,180 yuan.
These resistances are identified respectively as the 76.4 percent and the 100 percent Fibonacci projection levels of an upward wave c, the third wave of a three-wave cycle that developed from the Aug. 7 low of 37,310 yuan. A rise to 39,680 yuan may confirm a break above 39,560 yuan.
A drop to 39,260 yuan may signal the metal’s failure to break 39,560 yuan, and the 50 percent level at 38,860 yuan could be approached again.