Shanghai copper approach resistance at 38,410 yuan

Shanghai copper may approach a resistance at 38,410 yuan per tonne again, as it has managed to stabilise around a support at 37,950 yuan. The support is provided by the 14.6 percent Fibonacci projection level of a wave C, the third wave of a three-wave cycle that developed from the July 28 low of 37,440 yuan.
The resistance is at 38,410 yuan, the 38.2 percent level, a break above which could open the way towards a range of 38,640-38,870 yuan, formed by the 50 percent and the 61.8 percent levels. 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.