SINGAPORE: Shanghai copper may retrace to 50,450 yuan per tonne, as it failed to break a resistance at 50,880 yuan.
The resistance is provided by the 76.4 percent Fibonacci retracement on the fall from 51,580 yuan, an hourly chart high touched on July 3 and the Aug. 15 low of 48,620 yuan.
Copper could be pulling back towards a trendline descending from 51,580 yuan. However, a break below the support at 50,450 yuan, the 61.8 percent retracement, will lead to further loss to 50,100 yuan, the 50 percent retracement.
A break above 50,880 yuan will open the way towards 51,580 yuan.
The views expressed are his own.
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