SINGAPORE: LME copper may retest a support at $6,345 per tonne this week, a break below which could cause a loss to $6,225.
The support is provided by the 38.2 percent retracement on the downtrend from $7,348 to $5,725. The metal failed to break the 50 percent level at $6,537 after many attempts. Its repeated failures suggest the formation of a top around this level.
The bounce triggered by $6,345 may be short-lived, probably to end around $6,441, the 123.6 percent projection level of an upward wave C from $5,725. A break above $6,441 could lead to a gain of $6,525.
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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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