SINGAPORE: LME copper may break a support at $6,167 per tonne, and fall to the next support at $6,097, as suggested by its wave pattern and a retracement analysis.
These supports are respectively as the 38.2 percent and the 50 percent retracements on the uptrend from $5,800.50 to $6,393.50.
The rally from the Nov. 1 low of $5,974.50 is regarded as a bounce which is a part of a three-wave cycle from $6,393.50. The metal is riding on the third wave labelled (c), which is capable of travelling to $5,974.50.
A rise above the channel line resistance around $6,217 may lead to a gain into the range of $6,254-$6,307.
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*** Wang Tao is a Reuters market analyst for commodities and energy technicals. 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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