SINGAPORE: LME copper is expected to test a resistance at $6,742 per tonne, a break above which will lead to a further gain to $6,796.
A five-wave cycle from the May 28 high of $6,970 has completed.
Even though it is not clear how much this cycle could be reversed, it is still not difficult to establish a target at $6,742, the 50 percent retracement on the rise from the April 15 low of $6,513.25 to $6,970.
A further gain to $6,796, the 38.2 percent level, could even be possible.
Support is at $6,621, the 76.4 percent retracement, a break below which will cause a further loss to $6,513.
The views expressed are his own.
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