Shanghai copper fall back to 67,200 yuan/T

SINGAPORE: Shanghai copper is expected to retrace to 67,200 yuan per tonne, as the wave structure on the hourly chart indicates a downward wave "c" will develop towards the trough of the wave "a".

The rebound from the Sept 6 low of 66,330 yuan will end in a resistance zone of 67,790 to 67,130 yuan, formed by the 61.8 percent and the 76.4 percent Fibonacci retracements on the fall from 68,690 yuan to 66,330 yuan.

A rise above 68,130 yuan will extend to 68,690 yuan.

** 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.

Copyright Reuters, 2011