LME copper to fall to $6,003

SINGAPORE: LME copper is expected to fall to $6,003 per tonne, as a support at $6,145 does not seem to hold.

The support is provided by the 23.6 percent retracement of the downtrend from $7,348 to $5,773. The pattern between $6,145 and $6,375 looks like a double-top, which suggests a target around $5,883. A more realistic target will be $6,003.

Three waves make up the bounce from $5,773. The second wave labelled b ended at $5,800.50, which may be approached, according to wave theory.

The bounce still has a chance to extend, only if copper manages to stabilize around $6,003 and then rise towards $6,145. Once the support at $6,003 is broken, the chance will be wiped out.

The above analysis is based on delayed data, prediction may be affected.