SINGAPORE: LME copper faces a support at $6,843 per tonne, and may rebound moderately to $6,895 before falling again.
The support is provided by the 61.8 percent Fibonacci retracement on the rise from the July 9 low of $6,671.75 to the recent high of $7,119, only a break below which could lead to a further loss to $6,777, the 76.4 percent retracement. The break below $6,843 will be confirmed when copper drops to $6,825.
Given that the 38.2 percent retracement at $6,948 has triggered a rebound, the 61.8 percent level may do the same, as the 50 percent retracement at $6,895 has failed to hold the fall.
A very decent rebound above $6,895 will be less possible.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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