Shanghai copper's rebound capped around 68,130 yuan/T

SINGAPORE: Shanghai copper faces a strong resistance zone of 67,680-68,130 yuan and its rebound is expected to end once the contract touches the level.

The rebound has adopted an "a-b-c" wave mode, with wave "a" too long and too strong for another similarly long wave "c" to develop. That means wave "c" may only be 0.618 times the length of wave "a", to end around the 68,130 yuan level, the 61.8 percent Fibonacci projection level of the wave "c" target.

Support is at 66,330 yuan, and a fall below would signal the completion of the rebound that started from 63,560 yuan.

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Copyright Reuters, 2011