SINGAPORE: Signals are mixed for LME copper as it is not clear if the rebound from the Oct. 25 low of $7,113 per tonne is extending.
An extension means copper will end its current fall somewhere above $7,113 and then rebound again towards a resistance zone of $7,204-$7,232, formed by the 38.2 percent and the 50 percent Fibonacci retracements on the fall from the Oct. 22 high of $7,350 to $7,113.
However, the momentum of the current drop does indicate a completion of the rebound.
The resumption of the preceding downtrend will be confirmed when copper pierces below $7,113.
The views expressed are his own.
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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