Shanghai copper may stabilize around 40,810 yuan

SINGAPORE: Shanghai copper may stabilize around a support at 40,810 yuan per tonne and then rise towards a resistance at 41,510 yuan.

The support and the resistance are identified respectively as the 123.6 percent and the 150 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.

This wave failed to extend above a resistance at 41,510 yuan, the 150 percent level, but may not peak around this level, as it is capable of traveling to 41,820 yuan, the 161.8 percent level.

The metal may seek a lower support at 40,570 yuan, the 114.6 percent level, if the support at 40,810 yuan fails to hold the fall.