SINGAPORE: Shanghai copper is still expected to fall to 54,070 yuan per tonne as a bearish triangle has contracted to a point.
The triangle is considered a continuation pattern, indicating the previous downtrend that started from the August 2011 high of 73,590 yuan will eventually resume.
Even if the metal hovers near the upper trendline of the pattern, it tends to fall to the lower trendline.
Resistance is at 57,000 yuan, a break above which will trigger a gain to 58,590 yuan.
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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