Shanghai copper to drop to 71,460 yuan/T
SINGAPORE: Shanghai copper would fall more to 71,460 yuan, a low touched on July 25, as it failed a strong resistance zone of 73,420-73,520 yuan per tonne.
The zone was formed by the 76.4 percent Fibonacci retracement on the fall from 76,290 yuan to 64,110 yuan and the 161.8 percent Fibonacci projection level of the wave "c" target.
From a longer perspective, the drop on Tuesday could have triggered the development of a medium-term downtrend, which would reverse the rise from 64,110 yuan to 73,590 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.
Copyright Reuters, 2011
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