Friday, 21 August 2015 12:22
SINGAPORE: Shanghai copper may break a resistance at 38,970 yuan per tonne and rise further to the next resistance at 39,290 yuan, as its bounce from the Aug. 19 low of 37,960 yuan has extended.
Wave pattern suggests the bounce is driven by a wave C, the third wave of a presumed three-wave cycle that developed from the Aug. 7 low of 37,310 yuan. This wave could travel to 39,600 yuan, the 61.8 percent level.
A more realistic target could be 39,290 yuan, the 50 percent level, which will be confirmed when copper climbs above 38,970 yuan, the 38.2 percent level.
Support is at 38,590 yuan, the 23.6 percent level, a break below which could cause a loss to the 14.6 percent level at 38,350 yuan.
