SINGAPORE: LME copper is expected to stabilize in a support range of $5,704-$5,797 per tonne this week, and then bounce towards $5,989.
The range is formed by the 76.4pc retracement on the downtrend from $10,190 to $4,318 and the 50pc projection level of a downward wave C from $6,608.50.
The support at $5,704 caused two decent bounces. Without exception, it may cause another one.
Indeed, even since copper started the downtrend from $6,608.50, there has not been any decent bounce yet.
This is a bit uncommon.
A break below $5,704 may cause a loss limited to $5,605.
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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.
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