LME copper to end rebound near $9,358/T
SINGAPORE: LME copper is expected to end its exhausted rebound near $9,358 per tonne based on its wave pattern and a Fibonacci projection analysis.
The rebound started from the May 12 low of $8,504.50 and has been broken down into "A, B, C" three waves, with the current wave "C" likely to travel the same length as the wave "A", to complete around $9,358, the 100 percent Fibonacci projection level.
A bearish divergence formed on the hourly MACD indicator also strongly suggests copper is technically weakest now.
Support is at $9,115, a fall below which would confirm a deep correction towards the wave "B" trough of $8,732.
** 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
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